Everton owner Farhad Moshiri has entered into a period of exclusivity with US billionaire Dan Friedkin over the sale of the club.
Having seen the long-doomed pursuit of a Toffees takeover by Miami-based 777 Partners finally end last month after the struggling firm failed to come up with the funds to complete, AS Roma owner Friedkin was one of a number of interested parties to show their hand.
The 59-year-old, whose estimated $6bn fortune was amassed through ownership of Gulf States Toyota, a car dealership in the south of the US, as well as film studio interests, entered into an agreement with Moshiri earlier this week over exclusivity to pursue the completion of the deal, as first reported by the Financial Times.
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While it is a step closer to a deal for the club, and provides a credible candidate with football experience and considerable resources, people familiar with the matter stressed that it was not a deal that was done and dusted.
Friedkin and his team have now started the process of due diligence and will be analysing all aspects of the club’s business to get a full understanding of the financial situation and the risks that they will be undertaking in acquiring the Toffees. A potential purchase price was not disclosed.
Sources close to the Friedkin bid state, however, that there was a strong will on both sides to get a deal over the line, and provided the due diligence conducted throws up no surprises then both were working towards completion.
No timeframe was given on how long the process could take. Exclusivity periods, which forbid the seller from engaging with any other interested parties while the prospective buyer undertakes due diligence, typically last 30 to 60 days but can be extended if agreed by both parties. Those close to the Friedkin bid say that the period will last as long as required for them to be fully satisfied and could be extended if needed.
As owner of Italian Serie A side Roma, questions will inevitably arise around potential multi-club ownership. It is understood that the two clubs would sit independently of one another, the only potential issue being in the future should both clubs make European competition.
But it is noted that a swifter resolution allows for new ownership to have more time to work in the transfer market and aid the financial picture moving forward as the club prepares for their final season at Goodison Park before a move to the new 52,888-seater stadium, which has been a major draw for US investor interest, from the 2025/26 season.
Since the turn of the year up until the collapse of the deal, 777 Partners had been providing working capital for Everton as part of the sale purchase agreement signed with Moshiri back in September last year, with more than £200m committed during that period. That was done via junior debt, unsecured, unlike other creditors that the club has such as Rights and Media Funding Limited, MSP Sports Capital, and Metro Bank.
Everton have no immediate cash flow concerns due to the fact that they, like all Premier League clubs, are now in receipt of merit payments and broadcast money due to them from the League, as well as the financial flexibility that an open summer transfer window provides.
Any takeover would require Premier League, FA, and Financial Conduct Authority approval, none of which are likely to be an issue for Friedkin, who has sat as a board member of the European Clubs Association for some time.
Olivia Martin is a dedicated sports journalist based in the UK. With a passion for various athletic disciplines, she covers everything from major league championships to local sports events, delivering up-to-the-minute updates and in-depth analysis.
