Dan Friedkin could now instantly recoup Everton £550m takeover fee - Kieran Maguire
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At last, there is light at the end of the tunnel for Everton. With Dan Friedkin’s takeover a formality, they can look towards concentrating on Premier League survival and streamlining their finances.
The takeover saga has rumbled on for well over two years, with Friedkin one of five parties to have entered into exclusive talks with Farhad Moshiri in that time.
That has been a major distraction for Everton boss Sean Dyche and sporting director Kevin Thelwell, who have had to steer the club through the turbulence on the pitch.
But the Friedkin takeover will relieve the strain significantly, reducing the club’s enormous debt burden and clearing the runway for Everton to land at their new stadium at Bramley Moore Dock next season.
To explore what the future looks like for Everton in the Friedkin era, TRB Football spoke exclusively to Liverpool University football finance lecturer, Price of Football author, and industry insider Kieran Maguire.
Dan Friedkin’s in-tray
Given the extent of the issues at Everton, what will be Friedkin’s top priorities after the deal to buy the club from Moshiri is complete?
Maguire pointed to a combination of addressing regulatory issues, getting on top of recruitment, and Everton’s imminent PSR hearing, which could yield their third points deduction in two seasons.
“If and when Dan Friedkin takes over, I suspect there will be two lists, one longer than the other.
“One will be the players that the managers and the director of football would like to purchase in an ideal environment. The other will be a list of players that Everton can actually afford to buy given their position under PSR.
“There is still an outstanding charge against Everton with regards to the way that interest has been borrowed for the Bramley Moore Dock project.
“That is very much relating to a relatively narrow interpretation of accounting rules and the capitalisation of loans, but it could impact Everton this season.
“Although, I’m sure that fans will be buoyed by their victory over Crystal Palace.”
Bramley Moore Dock’s naming rights
It has been almost two years since Everton commissioned a specialist agency to find a naming rights partner for the Bramley Moore Dock stadium.
Under Moshiri, Everton have previously been in talks with Qatar Airways, and the club have also struck several ‘founding partner’ deals with the likes of Castore and Aramark.
And with £150m potentially on the line as part of the minimum 10-year deal wanted by Everton CEO Colin Chong, Maguire insists that the naming rights will be top of the agenda for Friedkin post-takeover.
“I think it’s essential to have a naming rights partner at the opening of the new stadium.
“However, as we have seen with Man City when they first moved into their new stadium, they waited to strike the right long-term deal.
“It is critical to get a long-term deal. The Amex, The Emirates, The Etihad have all got these arrangements.
“The Friedkin Group certainly have the resources to ensure that Everton are cash rich.
“I think it is more a case of getting the right deal and a partner that can given not just financial benefits but other off-pitch benefits for Everton as well.”
Friedkin to sell Roma?
Relations with fans at the other Friedkin-owned club, AS Roma, have soured significantly since club legend Daniele De Rossi was fired as manager a few weeks ago.
That has even led some to suggest that Friedkin could sell Roma, perhaps to a Saudi investor.
The Friedkin Group have since reiterated their commitment to Roma, saying that they look forward to operating as a multi-club network.
But if indeed Friedkin does choose to cash in on the three-time Serie A champions, Maguire is backing him to get the £465m back that he initially paid for the club four years ago.
Given that the total cost of the takeover to Friedkin was around £550m in terms of repaying the loans and converting debt into equity, that would mean he would almost instantly recoup his investment in Everton.
“In terms of the potential sale of Roma, given that Italian football has not managed to significantly increase broadcast rights in recent years and Roma are running at a loss, I think he would be happy to recoup his investment of £465m.
“It was a distressed asset at that point. Fans at many clubs can be very demanding. Relations between fans and the owner can sour very quickly if performances do not match the ambitions of the fanbase.
“There is no need on a cash basis to sell Roma. That means Friedkin doesn’t have to accept a distressed asset price.
“He can get the best deal rather than the first deal that comes up should he decide to go down that route.
“I’m sure he is considering all options, including the benefits of having two senior clubs in Europe as part of a multi-club network.”
