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Everton debt complacency staggering as best-case takeover scenario shared

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Published on:

10 Aug 2024, 2:40 pm

Finance expert The Esk said the complacency over the debt position at Everton is "staggering and worrying" and believes a best-case scenario for a takeover would still take at least three months.

The Esk previously stated the Toffees have external debt in excess of over £600million (The Esk blog, 19 July) and believes that level of debt leaves the club "vulnerable" in the remainder of the transfer window.

With the Friedkin Group pulling out of their own proposed takeover, the situation in terms of finding a buyer for Farhad Moshiri's stake remains unclear, a situation the Esk wants solving as a matter of urgency.

He wrote on his blog (10 August): "The complacency around Everton’s debt position is staggering and worrying in equal measures.

"Commentators, even many fans and smaller shareholders with some interest in the club’s finances almost glibly talk of external debt as not an issue of immediate concern despite it totalling more than 3.5 times current turnover.

"It is of course, tied up with the ownership and leadership crisis around Everton which whilst requiring the correct outcome, needs sorting with absolute urgency. Let’s not forget selection, due diligence, acceptance and then Premier League approval will even in a best-case scenario take 3 months to complete.

"Our debt position cannot be rectified prior to new ownership, which from a footballing perspective renders us vulnerable this transfer window."

Everton must act quick to resolve takeover situation

Few Everton supporters would have been sad to see the collapse of the 777 Partners takeover given all the issues that arose with that particular situation, and indeed most probably breathed a sigh of relief.

It looked like a genuinely exciting solution had been found in the Friedkin Group, one which would have had Toffees supporters dreaming of a brighter, more financially secure future.

Dan Friedkin's Everton takeover is off (Credit: TIFF Originals - YouTube channel)

Alas, that deal fell through and it left the club back at square on in terms of finding a solution to a huge problem and the Esk is right to say that there should not be so much complacency over the level of external debt at the club.

Eventually those debts will need to be repaid and it is abundantly clear that the only way they do get paid is via a new buyer. Time is of the essence, there needs to be some clarity on the situation and fast.

In other Everton news, Sean Dyche has an injury concern following the friendly draw with Roma.

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