A-Cap could buy Everton shares as details of Friedkin deal for £200m 777 debt emerge
Dan Friedkin’s deal with A-Cap to cover the debt owed by Everton might see the company end up with shares in the club, according to The Athletic.
The outlet reported via their website on 23 September details on the deal that looks to have been agreed between The Friedkin Group and A-Cap on the £200million originally owed to 777 Partners, the same debt which saw TFG walk away from their takeover in the summer [The Athletic, 19 July].
An agreement has now been announced with Farhad Moshiri as the Friedkins arrived back on the scene to gazump John Textor, with the 777 issue now resolved [Giulia Bould, 23 September].
According to The Athletic it “appears” the A-Cap deal consists of TFG paying off “a good chunk” of the £200m while the rest is converted to “payment-in-kind notes”, which would give the Friedkins greater flexibility on when they pay off the debt, and “warrants” which would give the lender, A-Cap, the ability to buy shares at a fixed rate.
The deal comes in the wake of reported suggestions that A-Cap could become a minority partner in Everton by converting the debt into equity.
This agreement must still be cleared by the New York court where 777/A-Cap a fighting a legal battle against accusations of fraud, which they deny, and Friedkin seemingly believes it will be accepted.
Dan Friedkin set to buy Everton from Farhad Moshiri
The idea that A-Cap could remain connected to the club long-term into the new era under Friedkin may not be a popular one in itself.
A-Cap were the original source of the money 777 put in during their months-long failed takeover attempt last season, so plenty of fans would probably prefer all links to be cut from either.
But it was little over two months ago that Friedkin walked away from a takeover largely due to the financial and legal uncertainties associated with this debt [The Athletic, 20 July], even going as far as to give The Esk (20 July) a statement calling the issues “unresolvable” at the time.
Seeing the buyout seemingly snatched away at that point was demoralising for a fanbase that has seen their club lurch from one crisis to another in recent seasons.
So for Friedkin to apparently land an agreement which overcomes an issue that was feared likely to linger months into the future is a hugely positive development.
If a smaller, manageable debt to A-Cap remains, or even if they bought a minority stake, it would be a fly in the ointment in the grand scheme of things, as long as The Friedkin Group remain in charge.
Some doubts will remain until this takeover is finally confirmed as done, and the potential for the New York court to reject this debt deal is potentially one of the most significant remaining hurdles.
But with Premier League ratification expected to be achieved without incident within eight to 12 weeks [Ben Jacobs, 23 September] things are suddenly looking far, far brighter.
In other Everton news, Moshiri was unhappy with what Textor did and it allowed Friedkin to steal in for a takeover agreement.
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