Everton have £553m problem with Dan Friedkin takeover as new details emerge

Everton’s impending takeover by AS Roma owner Dan Friedkin faces one serious hurdle. 

The US billionaire, who is believed to be worth around £5bn, has struck an exclusivity agreement with Farhad Moshiri.

Both parties have now entered into talks to define the exact terms of the sale of Moshiri’s 94 per cent stake in the club. 

Friedkin was one of around nine serious candidates to purchase the club.

Among them were MSP Sports Capital and MSD Partners, who are part financed by Michael Dell.

Those groups, like failed takeover suitors 777 Partners, are all linked to multi-club models.

And that structure could prove a problem for Everton further down the line in Friedkin’s imminent premiership.

Everton will be junior partner in Dan Friedkin’s multi-club network

Friedkin’s ownership of Roma, whom he bought £533m will not disqualify him from buying Everton.

However, supporters have raised questions about how Friedkin will balance the competing needs of two famous European clubs. 

And now, Italian outlet Gazzetta Dello Sport (via Sport Witness) are reporting that Roma will remain the senior club in Friedkin’s portfolio.

Significantly, this would likely mean Everton would be unable to play in the same European competition as Roma.

UEFA are clamping down on multi-club structures at a time when more and more investors, especially from US private equity, are buying into the model.

Man United and Man City’s sister clubs – Nice and Girona – have been given license to play alongside their subsidiary clubs in Europe, although this is merely a temporary reprieve.

UEFA will not be so lenient from 2025-26.

It is unlikely that Friedkin will steer Everton towards European competition in that timeframe, but UEFA’s crackdown places an upper limit on their ambitions going forward.

• READ MORE FOOTBAL FINANCE ANALYSIS: Everton set for crucial £400m takeover update on 4th July

What are the benefits of the multi-club model for Everton?

While there are complications, the benefits of the multi-club model cannot be disputed – for the owners at least.

Having more than one club in a nexus allows owners to diversify risk across the group, facilitate commercial collaboration, and establishes a pre-made scouting network.

There are also workarounds in terms of recruitment, especially in a post-Brexit environment that employs a points system under which players must gain requisite experience before moving to the UK.

And recently, certain clubs have taken to trading players around their networks in order to improve their financial fair play (now Profit and Sustainability Rules, or PSR) position.

Whether any of these benefits will apply to Everton or whether Friedkin would prefer to operate the two as separate entities entirely.

This raises the question of integrity too. Certain clubs in Man City’s multi-club orbit, for example, have raised issues about losing their identities and serving merely as a subsidiary to the mothership.

This will likely be addressed by the Toffees’ excellent supporters trust and fan advisory board.