Toffees Secure Sweet Investment
Premier League football club Everton has reached an exclusivity agreement with MSP Sports Capital for a ‘significant investment’.
According to BBC Sport, the deal with the American private equity firm is not complete but ‘talks are progressing’ over funding for the relegation-threatened club.
Another US investment firm, 777 Partners, was thought to be in line to complete a full takeover from current owner Farhad Moshiri but it now seems investment from MSP is the most likely outcome.
Everton primarily requires investment for its new stadium, currently being built on Bramley Moore Dock in Liverpool. Costs for the project have exponentially risen from £500m to roughly £760m.
In addition, Everton’s latest accounts show that the club has lost money for the fifth successive year with financial losses totaling more than £430m over that period.
The club is also £141.7m in debt. It is believed that this is what deterred 777 Partners from deciding to invest.
As well as the issues off the pitch, Everton currently sits two points above the relegation zone with one game remaining. The threat of no Premier League football at Goodison Park next season creates more uncertainty over investment and the club’s value.
In February 2023, Moshiri expressed that the club was “not for sale” however he has engaged with numerous potential investors.
Since 2016, the British-Iranian businessman has invested more than £750m into the club. Despite this, many of the club’s supporters are unhappy with his ownership and have staged pre-match protests calling for Moshiri and the board to leave the club.
It is believed that MSP is seeking a 25% stake with a preferential share structure and not equity in the club, and would therefore be paid back in interest. However, MSP would expect boardroom representation if the minority investment were successful.
The exclusivity agreement agreed protects MSP from being outbid by another party.
The firm’s current sports portfolio includes European clubs such as Brondby in Denmark, Augsburg in Germany and Estoril in Portugal.
