Everton have reportedly held preliminary talks with a US-based special purpose acquisition company with regards to a takeover.
According to Bloomberg, a SPAC led by Los Angeles-based producers Jeffrey Soros, the nephew of hedge fund tycoon George Soros, and Simon Horsman have held early talks over a potential deal through their LAMF Global Ventures Corp vehicle, which counts former Everton director Keith Harris as a special advisor.
The report claims that the SPAC, which raised $253m in its initial public offering back in November 2021, is targeting a European football club but stresses that deliberations between the two parties are in their infancy. Everton declined to comment on the speculation.
READ MORE: Frank Lampard's big summer hope is starting to come true at Everton
READ MORE: Inside Everton's efforts to ensure young players are not stranded without an education
Only last week the Financial Times reported that US real estate mogul Maciek Kaminski had returned to the table for talks with Blues owner Farhad Moshiri over a takeover deal having been heavily linked during the summer as part of a consortium that also included former Manchester United CEO Peter Kenyon and oil tycoon John Thornton. While Kaminski, the ECHO have been told, remains interested, there is no deal imminent, although investment in the stadium is also thought to be an option. Kenyon and Thornton are no longer part of the talks.
For LAMF Global Ventures Corp, their IPO came at a time when the SPAC market was particularly hot, something that has cooled considerably over the past 12 months. A number of SPACs have closed, handing back money to investors without making an acquisition. RedBall, the SPAC formed by now AC Milan owner Gerry Cardinale and baseball analytics guru and 'Moneyball' pioneer Billy Beane, closed operations during the summer having failed to acquire a target in its two-year search. RedBall had initial dialogue with Liverpool owners Fenway Sports Group over a 20 per cent stake before pivoting to a $750m private investment from Cardinale's RedBird Capital Partners in March 2021.
SPACs are blank cheque companies that raise funds from investors via IPOs, with the investors having little knowledge of exactly what will be acquired aside from the industry where the SPAC will be seeking to acquire, or usually merge, with an existing private company, taking it public on the stock exchange.
There is a ticking clock from the IPO, however, with SPACs generally having a period of between 18 and 24 months to find a merger partner after raising money, having to return funds, held in trust accounts, to investors if they are unsuccessful. The LAMF SPAC still has time on its side. The LAMF SPAC was set up with the intention to focus on opportunities in media, entertainment and sports, as well as within e-commerce and technology.
Soros and Horsman created their Los Angeles Media Fund (LAMF) in 2012 and have used that business to invest in film, TV and theatre projects on Broadway, including the 2019 TONY-winning revival of Oklahoma! LAMF also founded Invent TV, which has several unscripted shows in production and Beyond Athlete Management, a sports agency, which represents numerous NBA and NFL players.
The Premier League has been an attractive option for US investors, aided further by the appreciation of the dollar against the pound. Many US investors also view the valuation of Premier League teams as favourable when compared to the values of teams across the major American sports markets.
READ NEXT:
Everton extend kit partnership with hummel for further season
Why Everton v Manchester United is kicking-off at 7pm on Sunday
Frank Lampard faces Anthony Gordon decision as three Everton players become undroppable
Everton starlet signs new deal as Kevin Thelwell continues to place faith in academy
Conor Coady and Everton position clear after Bruno Lage sacking by Wolves
