The Esk: 'Very Significant Issues' scare Everton buyers away from takeover

Everton buyers see potential Proceeds of Crime Act [POCA] problems affecting the takeover as “very significant issues”, according to The Esk.

The Toffees analyst wrote on his website on 31 July that prospective bidders for the club in the wake of Dan Friedkin’s withdrawal have deemed the legal headache that could arise as a major barrier to pushing ahead with their own attempts to buy the club.

Friedkin pulled out over uncertainty regarding the £200million-plus debt built up to 777 Partners during their doomed takeover which has now been takeover by original lenders A-Cap, with both firms accused of fraud by a third, Leadenhall Capital Partners in a US civil lawsuit – 777 and A-Cap deny all wrongdoing.

Corporate lawyers for any subsequent Everton buyers are expected to warn their clients over the chances of the US Justice Department getting involved in future [The Athletic, 20 July].

The Esk reports that others, including “one very senior POCA and money laundering compliance expert” believe the likelihood and the risk is “extremely-limited”, but it appears to be scaring off candidates all the same.

Farhad Moshiri search for Everton buyer hits 777 and A-Cap block

It is somewhat reassuring that the threat of the legal dispute in the US is unlikely to escalate but even a small risk of that happening looks to be a enough to spoil the takeover for some.

The Friedkin Group was largely seen as a serious and capable option so their withdrawal came as a major blow to the Evertonian fanbase.

Their judgement would be trusted by similar investors and potentially knocks out a significant swathe of the desirable new owners.

On the plus side Everton and Moshiri only need one buyer to come forward with more money or confidence than the Friedkins and the issues that will be brought on without a takeover can be avoided.

But it is undoubtedly a concern that one of the issues that brought down the previous attempt to buy Moshiri out is also derailing potential future ones before they even get off the ground.

In other Everton news, a Sky Sports journalist has shared the next expected signing after Jake O’Brien.

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