The uncertainty surrounding the future of Everton has moved a step closer to being resolved after Farhad Moshiri committed to a ‘period of exclusivity’ with MSP Sports Capital.
The majority shareholder has been openly seeking investment for almost 12 months, insisting his search is within the context of financing the completion of the new stadium development on the Liverpool waterfront.
The precise detail of MSP’s interest is unclear but, following the latest development, this is the current state of play.
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Confirmation of the exclusivity agreement came on Monday after a week in which speculation of a potential deal had intensified. Moshiri publicly revealed he was moving in financial circles to seek partners last summer amid a first period of rumour and counter-rumour about his intentions.
He stressed there was not a “for sale” sign on Everton and that his efforts were focused on financing the final tranche of work on the club’s state-of-the-art stadium complex at Bramley-Moore Dock, stating last July: “I am actively focused on completing the financing for our fantastic new stadium as well as strengthening the playing squad and that might include a search for minority investment.”
While he has claimed he could fund the project to its end, he has also said such plans could act as a vehicle to bring outside expertise into the club.
This has remained his publicly-stated position throughout but the search for investment appeared to spark the interest of parties keen to explore a full takeover of Everton. This is thought to have been the ambition of 777 Partners, a US-based investment firm that already has influence at several other football clubs around the world and which was rumoured to be closing on a deal.
However, it was always clear 777 were in competition with MSP. Also a US-based investment firm with a stake in several football clubs, MSP’s interest became clear when co-founders Jahm Najafi and Jeff Moorad, along with vice president Peter Taylor, watched Everton’s January defeat to Southampton from the Goodison Park directors box.
It is now clear that MSP is the frontrunner in the battle for a piece of Everton, the New York-based group having earned the opportunity to access the data needed to determine whether to proceed with its bid. The exact nature of that interest is not public, but MSP’s plot is centred on investment in the club rather than a full takeover.
Should a deal be agreed it is anticipated that funding will be used to support the stadium development, said by Moshiri in January to be expected to reach a total cost of £760m. It is likely that MSP would receive representation on Everton’s board of directors as a result. Chairman Bill Kenwright, chief executive Denise Barrett-Baxendale, non-executive director Graeme Sharp and finance director Grant Ingles currently occupy positions on that board, which could experience change in the event of a deal.
Moshiri said earlier this year that he was close to a deal, explaining: “The club is not for sale, but I have been talking to top investors of real quality to bridge a gap on the stadium. I can do it myself; the reason I want to do it is to bring top sport investors into Everton, for some of the reasons the fans want improvement: more talent. We are close to having a deal done. It is not selling the club at all, it is just bringing more expertise in terms of global sponsorship, commercial development and a lot of specialist sport investors have this pool of knowledge.”
While the exclusivity deal represents a significant development in Moshiri’s search, it does not guarantee anything more conclusive - nor is it unknown territory. Last summer, Moshiri agreed similar terms with a US-based consortium led by billionaire Maciek Kaminski but no agreement followed.
While there have been claims a deal could be reached this week, that is not expected to be the case. Everton’s Premier League status is a substantial factor in discussions, which are likely to continue into the summer. Everton’s battle against relegation will go to the final game of the season, when the club hosts Bournemouth on Sunday.
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