Kieran Maguire cites Elon Musk in Everton takeover verdict as Dan Friedkin's wealth set to soar
The Farhad Moshiri era is, at long last, coming to a close for Everton supporters. But what kind of owner will heir apparent Dan Friedkin...
The Farhad Moshiri era is, at long last, coming to a close for Everton supporters. But what kind of owner will heir apparent Dan Friedkin be when his takeover finally goes through?
Friedkin has been characterised as a highly credible option for Everton who can engender a much needed sense of stability at Everton since he agreed terms with Moshiri to buy the club earlier this year.
Granted, most prospective owners would represent stability compared to Moshiri, whose premiership on Merseyside has been beset with both financial and football problems.
Two Profit and Sustainability Rules (PSR) breaches saw them hit with two separate Premier League points deductions last season.
What’s more, Everton are awaiting a third PSR hearing later this year relating to the capitalisation of interest payments on their new stadium at Bramley Moore Dock.
Friedkin’s takeover represents salvation, but there was a very real fear at one point about cash flow – AKA Everton’s ability to pay wages and finance the day-to-day running of the club.
Having pumped hundreds of millions into the club and with UK government sanctions forcing Kazakh benefactor Alisher Usmanov to withdraw from Everton, it appears Moshiri’s cash has completely dried up.
But there are a number of hurdles to jump before Friedkin, whose ownership of AS Roma has been turbulent of late, is handed the keys for Goodison Park.
Ahead of Dan Friedkin’s takeover, is Everton’s debt set to get even higher?
The timeline of the Everton takeover varies according to which source you consult.
The hope is that the deal will be finalised before 2025, although some have suggested that the American billionaire could be in situ sooner.
However, Everton need to pay the bills in the meantime. One finance expert, former Man City advisor Stefan Borson, has predicted Everton could take on more debt by the end of the month.
But how would that work with Friedkin not formally Everton’s new owner yet? There is a clear workaround, says Liverpool University football finance lecturer Kieran Maguire.
“The very fact that we have seen other prospective owners provide working capital with a view to getting a deal over the line is a sign that there is a serious desire on the buying side.
“It is no different to had the money have gone in on 1 November, Friedkin would be putting money in to ensure the November wage bill had been paid.
“The fact that they are doing it in advance of the deal is a sign of progress between the two parties.
He has put money in already and paid off one of the existing loans. From an enterprise value point of view, it makes sense.
“Once the deal then goes through, Friedkin might then convert it to equity.”
The 777, A-Cap, Leadenhall issue
Another potential roadblock is the ongoing lawsuit involving former Everton takeover 777 Partners.
Essentially, Everton are unable to pay off a £200m loan from 777 Partners – which has since been taken over by one of their creditors, the financial firm A-Cap, because it is the subject of an injunction.
That injunction, filed by London-based firm Leadenhall, could potentially be in place until March, according to recent legal filings in the US.
But “Friedkin will have already done a risk assessment so I don’t think this will cause any anxiety,” suggests Maguire.
“He might have tried to get some assurance from Moshiri or another third party as to the potential downside of a settlement.
“But it will have already have been factored into the negotiations.”
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Dan Friedkin’s Donald Trump links
Another interesting line that emerged from the world of football finance ahead of the US presidential election was that Friedkin is a major Republican donor.
While the 59-year-old did not donate directly to now president elect Donald Trump, he has contributed indirectly via a lobby group, the
And just like Trump ally Elon Musk – albeit several steps further removed – is among the investors who are set to benefit from a second Trump presidency, forecasts Maguire.
“As a Trump donor, one would imagine that Friedkin will be focused on other issues at present anyway.
“Also, the chances are that Friedkin’s own wealth following the re-election of Trump will have risen.
“Elon Musk, for example, is £30bn richer.”
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