'Significantly' - The Esk: Everton takeover by billions-backed bidder will impact reported £1bn+ debt

Andy Bell and George Downing’s Everton takeover bid succeeding will “significantly” improve the debt situation at the club, according to The Esk.

The Toffees blogger responded to a question via Twitter on 9 June to claim that the two lifelong club supporters’ offer, which is backed by the investment vehicle for American computing billionaire Michael Dell, would have a major positive effect on the money owed.

According to The Telegraph on 10 May the total debt picture at Goodison Park had advanced beyond £1billion over last season, once the regular loans from failed buyers 777 Partners were added in.

Bell and Downing themselves have already lent £50m of that to the club [Telegraph, 7 June], and are now looking to complete a takeover of the club from Farhad Moshiri.

The Esk wrote: “The Bell/Downing/MSD deal will significantly reduce the size and cost of debt.”

Is Michael Dell-backed bid set to buy Everton from Farhad Moshiri?

Although the takeover race has been reported to be a wide one, with bids also said to have gone in from fellow creditors MSP Sports Capital, and a consortium led by Vatche Manoukian, as well as interest from the likes of Roma owner Dan Friedkin.

But there is reason to believe that Bell and Downing are in pole position to gain an exclusivity agreement with Moshiri, and may even be the only ones realistically left in the race.

Their bid is reported to be a combination of equity and a new £350m loan from Dell secured against the new stadium, while Manoukian’s group are said to have come up with a £400m offer consisting entirely of equity [The Athletic, 8 June], which would seemingly favour the latter in terms of the debt situation.

But The Esk has already dismissed the Manoukian group as not being serious bidders, and while he is clearly well-disposed towards the Bell-Downing option he has also committed to scrutinising their candidacy as he has others, most notably 777.

Interest payments on elements of the debt are reported to be at rates north of 10 per cent [Guardian, 17 April], making it clear that work to reduce that burden is necessary to help navigate the club out of their current financial predicament.

So if the two Evertonians are the presumed winners of the takeover race, barring another new materialising, the details of their offer will become crucial to the future of the club.

But at what is still an early stage of the situation after months of stasis as 777 failed to complete a deal the Bell-Downing plan to refinance the debt has received some positive backing.

In other Everton news, a key transfer window ambition for Sean Dyche is available to sign for the club this summer.

For more Everton news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.

The post 'Significantly' - The Esk: Everton takeover by billions-backed bidder will impact reported £1bn+ debt appeared first on Goodison News.