Friedkin Group Finalizes Acquisition of Everton

Everton Football Club has become the tenth Premier League team under majority American ownership following the completion of its takeover by The Friedkin Group, which brings an end to Farhad Moshiri’s tumultuous tenure. The transaction, which covers 99.5% of the club, is estimated to be valued at over £400m. This acquisition positions the Toffees as the tenth Premier League club to operate under predominantly American control. The group had reached an agreement with Moshiri on 23 September and was awaiting regulatory approval, with the Premier League holding the ultimate authority on the deal, which has now been granted. The Texas-based group, led by chairman Dan Friedkin, also owns the Italian Serie A club Roma. According to Forbes, Friedkin possesses a net worth of £6.16bn. Friedkin has been proposed as the chairman of Everton’s board, with Marc Watts designated as executive chairman. Watts, who serves as the president of the Friedkin Group, will be responsible for the club’s management. Friedkin stated in an open letter: “I take immense pride in welcoming one of England’s most historic football clubs to our global family, the Friedkin Group. Everton represents a proud legacy, and we are honoured to become custodians of this great institution.” He continued: “Whilst we are new to the club, we fully understand the vital role Everton plays in local culture, history, and the lives of Evertonians here and around the world.” Friedkin further added: “We are deeply committed to honouring this legacy while contributing positively to the community, economy, and people of this remarkable city.” British-Iranian businessman Moshiri initially acquired a 49.9% stake in Everton in 2016, subsequently increasing his holding to 94.1% in 2022. Everton, which has maintained its top-flight status since the 1953–54 season, has consistently finished in the bottom half of the Premier League for the past three seasons, securing 16th, 17th, and 15th positions, and currently sits in 16th place once again. Sean Dyche’s team is scheduled to play second-placed Chelsea at Goodison Park on Sunday (14:00 GMT), and representatives of the Friedkin Group are expected to be present at the match. Everton’s acquisition was carried out by Roundhouse Capital Holdings, an entity within the Friedkin Group, which purchased Moshiri’s 94% stake in the club held through Blue Heaven Holdings. Through subsequent debt-to-equity conversions, Roundhouse will increase its ownership in the club to 99.5%. The Friedkin Group has outlined a vision for a “sustainable and successful” future. This includes strengthening the men’s first team, developing home-grown players through the academy, implementing a distinct on-pitch and commercial strategy for the women’s team, and maximizing the potential of the new stadium. Everton is slated to move from its current home at Goodison Park to a new 52,888-capacity stadium at Bramley-Moore Dock starting from the beginning of next season. Ana Dunkel, the Friedkin Group’s chief financial officer, will join the board, while Colin Chong will continue as interim chief executive until a permanent appointment is made. Incoming executive chairman Watts commented: “Today marks a momentous and proud occasion for the Friedkin Group as we become custodians of this iconic football club. We are committed to leading Everton into an exciting new era both on and off the pitch.” He added: “Providing immediate financial stability to the club has been a key priority, and we are delighted to have achieved this.” Watts further stated: “While restoring Everton to its rightful place in the Premier League table will take time, today is the first step in that journey.” Watts identified the immediate priorities as stabilizing Everton and improving on-pitch performances, noting that most of the club’s debt has been converted into equity, repaid, or refinanced on more favorable terms. The Friedkin Group had initially agreed a deal in principle to acquire Moshiri’s 94% stake in June. However, talks were called off a month later after the two parties failed to finalize an agreement. This followed Miami-based 777 Partners being unable to complete a deal earlier this year. In a complex saga surrounding the takeover, American businessman and Crystal Palace co-owner John Textor was granted a period of exclusivity in August but could not finalize a deal because Premier League rules prohibit individuals from owning more than one team. In June, it was reported that Friedkin intended for Roma and Everton to be at the forefront of “a multi-club model.” Everton’s appeal to the Friedkin Group was reportedly based on the club’s history, its fanbase, and the new stadium at Bramley-Moore Dock, which is nearing completion. The deal brings to a conclusion the turmoil that characterized Moshiri’s reign. During his tenure, Everton employed eight permanent managers and two caretakers to lead the team, with the past three seasons consistently involving battles against relegation. Many supporters expressed deep unhappiness and protested his ownership, particularly as Moshiri had been largely absent from matches at Goodison Park since October 2021. Both Moshiri and the club were significantly impacted by Russia’s invasion of Ukraine, leading Everton to suspend commercial sponsorships with USM Holdings, a company partially owned by Alisher Usmanov. The billionaire Usmanov had his assets frozen by the European Union, prompting Moshiri to resign from his role as chairman in the company when Usmanov was sanctioned. Moshiri had been seeking a buyer and had agreed to sell his stake to 777 Partners in September 2023, but eight months later, the firm missed a deadline to complete the takeover. Last season, Everton received two separate points deductions, totaling eight points after an appeals process, for breaching Premier League profit and sustainability rules. Moshiri stated: “I truly believe that the transaction with the Friedkin Group is the best outcome for the club and its future success.” He continued: “Despite a challenging geopolitical backdrop, a significant amount has been achieved over the last couple of years including the delivery of a new sporting department, the stabilisation of our finances and the delivery of our iconic new stadium.” Moshiri concluded: “I now hand over to new owners confident in the outlook for the club and that our incredible fans will see the success on the pitch that they so thoroughly deserve.”