Everton spared £450m Premier League ruling as Kieran Maguire gives Manchester City update
Everton could have been put on a “sticky wicket” if they were ever forced to pay back shareholder loans, Kieran Maguire has said.
Speaking on TalkSPORT (7 October), the football finance expert discussed Manchester City’s legal case and their argument that interest-free shareholder loans are no different to commercial deals.
After the commission reached the same conclusion, Maguire warned that several clubs including the Toffees don’t have the money to pay back those loans, if that was ever needed.
In quotes reported by Liverpool World (8 October), Maguire said: “If you take a look at the details, 10 or 11 clubs have borrowed interest-free loans from owners.
“City are saying if you borrow and pay no interest you get a financial advantage – surely that’s no different from signing a commercial deal, and the commission reached the same conclusions.
“Where that would lead clubs going forward would put them in a sticky wicket. Arsenal don’t have a spare £250 million, Everton certainly don’t have a spare £450 million.”
Everton long way from stable despite Dan Friedkin takeover
Of the clubs to have taken out interest-free shareholder loans in the period leading up to the 2022/23 season, the Toffees are way out in front, with a staggering £451m owed [The Times, 7 October].
That amount had previously been largely owed to Farhad Moshiri and other shareholders at Goodison Park such as Rights and Media Funding, but that is all set to change after Dan Friedkin’s takeover.
Friedkin purchasing Moshiri’s 94.1 per cent stake in the club will see him inherit a significant level of that debt, aided by the fact that £200m is owed to the Friedkin Group from their previous involvement.
Furthermore, another £200m in loans given by 777 Partners, throughout a nine-month exclusivity period with Moshiri, is now worth just £66m in cash plus equity after the US investment group’s collapse [Paul Brown, 7 October].
That leaves Friedkin with significantly less financial worry once he does finalise his buyout to take the reins at Goodison Park, but that certainly doesn’t mean the Toffees are out of the woods.
In other Everton news, one former Toffees director has slammed a “disgraceful” social media post towards an ex-player.
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