Everton news as MSP Sports Capital investment ends at Goodison Park
Everton have been hit by a “huge” blow after MSP Sports Capital withdrew from investment talks, according to the Athletic.
Matt Slater reported on Wednesday (23 August) that the American firm had left talks to take a minority stake in the Toffees having agreed a an exclusivity agreement in May with the expectation of investing up to £150m in convertible debt.
However, that exclusivity deal has now passed leaving the deal “dead” and the Toffees will not be receiving the investment that was mainly expected to help the development of their new stadium at Bramley-Moore dock. Instead, the company will complete a straightforward £100m loan towards the stadium company.
Discussing the reason for the collapse of the deal, Slater wrote: “The stumbling block being opposition from one of Everton’s existing lenders, Rights and Media Funding Limited. Everton, have a loan facility with the Cheshire-based firm that the club has extended to £200million this year.
“That debt is secured via four charges on club assets and they have negative pledge clauses which mean the holder can demand repayment of its debt before the borrower takes on any further borrowing. With Rights and Media Funding Limited reluctant to give up its protection against possible default, MSP’s plan became unworkable.”
Chaos continues
The ownership issues at Goodison Park have been in a state of chaos for the last few years and every time it seems to be getting easier, there is another twist in the tale for the Toffees and it never seems to be a helpful one.
Funds are already tight on Merseyside with FFP rules hanging over Sean Dyche’s side limiting their ability to spend in the transfer window and this latest deal falling through won’t be helping their plan to invest in their squad between now and the end of the window.
The new stadium has already cost well over its original £500m budget and that project has claimed most of the Toffees financial resources currently with another investment deal collapsing that status looks unlikely to change.
Everton fans will be hoping something can be done to stop what has been a constant rollercoaster of emotion that has left the financial future of their football club in constant flux. Protests have been carried out against Farhad Moshiri in the past and it wouldn’t be a surprise to see more again.
In other Everton news, the frontrunners have been named in the hunt for Callum Hudson-Odoi