'All Of A Sudden' - Everton takeover: Stefan Borson drops stunning reveal after Textor update

Everton could be subject to greater financial disclosure if John Textor completes a takeover after it has emerged he is seeking a US listing for his company.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider it would present potential issues for any club the American businessman is invested in.

Textor, who currently owns a minority stake in Crystal Palace, has entered a period of exclusivity to buy Everton owner Farhad Moshiri’s 94.1-per-cent stake at Goodison Park.

But Sky News reported on 26 August the 58-year-old is set to file documents with US regulators that will see Eagle Football Holdings become a US-listed company.

Textor’s firm are likely to seek around $500million (£381million) of new funding from investors as part of its initial public offering (IPO) plan, helping the American achieve a valuation of around $2.3billion (£1.75billion).

Everton could be subject to greater financial disclosure

But Borson doesn’t believe a US listing is well suited to football because of the amount of disclosure that would be required.

“He can only have one of Everton or Palace,” Borson told Football Insider.

“I think what it’s going to do is put up in lights a lot of what’s going on in terms of those clubs because the disclosure requirements that you have if you are a listed entity in the US are far greater than they would be as a private company in the UK or even elsewhere.

“Eagle Holdings are listed on Euronext, so that does mean that we do get quite a bit of extra visibility already. Every time they sign a player, we get the precise terms of the deal.

“But the requirements on the US listing would be greater again. With an organisation that’s a bit smaller than Man United, who are also listed in the US, you can expect more disclosure.

“That will be an issue for any club that Eagle are invested in, be that Everton, Palace or Lyon. It’s good for us as watchers, but it’s not brilliant if you’re an investor, particularly because quarterly reporting of a football club is not ideal.

“What then happens is, each time you have a bad spell in the league, all of a sudden your numbers look pretty ropy or your prospects don’t look too good. It’s just not well suited to football.

“But that’s what he’s going for. I think it’s probably because he wants to raise a decent chunk of cash and there are not that many sources that would give him $500million of equity.

“If he can get that from a US listing, then I can understand the logic in going for it.

“But there are some downsides in terms of the transparency that you would need to show to the outside world.”

In other news, expert drops explosive verdict after Textor allegations.

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The post 'All Of A Sudden' - Everton takeover: Stefan Borson drops stunning reveal after Textor update appeared first on Football Insider.