Everton takeover issue claim shared by Kieran Maguire amid new twist
Everton are unlikely to have any issues with their takeover despite borrowing £451million as an interest-free loan from Farhad Moshiri, according to Kieran Maguire.
The football finance expert claims that this revelation is not something that is stirring things up to generate headlines, but merely a fact that came to light after Manchester City’s legal victory over the Premier League.
Along with the Toffees, Brighton and Arsenal also owe staggering amounts to their shareholders who’ve also loaned money to the respective clubs. [The Athletic and Kieran Maguire]
Maguire wrote on X: “Having read the article I don’t think anything is being stirred though Danny. It suggests that the loans will be converted into shares so should not be an issue going forwards.”
Everton face a tricky future but the Friedkin Group are expected to be the owners
Converting loans into shares for the Toffees aligns with the Friedkin Group’s takeover strategy, primarily focusing on financial stability and compliance with financial regulations such as the Premier League’s PSR.
By converting the debt into equity, the Friedkin Group will potentially reduce the financial pressure on the club’s balance sheet, which is crucial given the high level of debt involved.
This move could also enhance the club’s attractiveness to investors and creditors by showing a commitment to long-term investment rather than short-term debt management.
The process would involve negotiating terms where the existing loans, particularly those from Moshiri, are renegotiated into equity stakes, effectively making the British-Iranian billionaire and other creditors, shareholders with a vested interest in the club’s future success.
However, it’s good news for the club as the Manchester City development is not expected to cause any issues with the takeover.
Fans are right to be worried as they’ve seen numerous false dawns with regards to the takeover saga and hopefully, it can finally be put to bed.
In other Everton news, a first-team star who lost possession 13 times in the Newcastle draw will be axed by Sean Dyche for the Ipswich Town game.
For more Everton news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.