The Friedkin Group reaches agreement to buy Everton

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What's this ? Registered 12 days ago

 

[Damo_1878]

I’d be far from defending him, however, he had a choice to make more money personally with Textor vs a deal wi5 less for him and greater investment in the club - he went with the latter - so while id be one of his biggest critics you’d have to say fair play.

This is a mischaracterisation @Neiler

The club couldn't be sold with out Friedkin Group agreement

They waited Moshiri out who due to more costs (stadium financing costs that were still outstanding) plus loans due in a year, Moshiri simply ran out time

Textor was never a serious buyer because he was incapable of buying the club without selling the Crystal Palace shares both for regulatory and capital reasons

Friedkin simply waited Moshiri out

Moshiri was at the point of having to dispose of the club as a "distressed seller"

That was public from Alyia offering:

Moshiri was trying to extricate himself because he can clearly no longer afford Everton

Probably due to access to capital reasons in UK and EU and US. I'd speculate

 

[Giraffe_Baker]

You’d have thought some ITK would have some details about the deal by now. You’d hope they are paying them off, but always sceptical until thats confirmed.

But we really do need 777 and RMF being as far from the club as possible.

Andy Hunter and Paul Joyce have said similiar in their articles that TFG have negotiated a cut-down price on the 777/ACap loan that they'll pay off and that they're paying close to, if not all, of the £225m owed to RMF.

 

[Nyhus]

Seemingly Moshiri is taking a big hit on his investment.

Oh my heart bleeds for him

 

[Eggs]

I think we had:

160m to MSP
200m to 777 (ACAP)

We also had issues with working capital which Friedkin offered another 40m for..

So he gave 200m (MSP & working capital) and now has agreed to a deal on the ACAP (200m)

Seemingly Moshiri is taking a big hit on his investment.

….he might have to sell his yacht, hard times.

 

[Taifi gorm]

Oh my heart bleeds for him

Alisher has a window for him.

 

[blueblue]

Debt and equity are essentially both just claims on assets.

So if you have 200 million in debt, bring in 200 million of outside money to pay off that debt, you've turned debt into equity.

The house example again...if you owe 200k on a mortgage (debt) and then win at the horses, and pay off that mortgage, you've turned debt into equity.

All of that is true but it is important to point out that you are not substituting one loan for another.

The money you invest to pay off loans is converted into shares which are the building blocks of any company. Your money doesn't disappear but instead of it being a loan to be repaid on an ongoing basis it is reflected in your shareholding and can be redemmed at a future date.

 

[Jebus_lives]

….he might have to sell his yacht, hard times.

Objectively he could've held on and looked for more money or just drained the club of any profit.

He's walked away with basically nothing. You can criticise him for a lot, but at least he actually did invest.

 

[Jebus_lives]

Despite claims from the club including Colin Chong. The stadium was STILL not "fully financed". Up to yesterday!

That working capital discussed yesterday is to conclude it

Moshiri has capitulated as he simply was no longer willing to take responsibility for the clubs debt nor has the ability to complete the stadium

Getting R&MF paid off alone is going to be a boost for the club.

How we have been ran is an absolute disaster

Regardless of any claims from Colin Chong that this was all to a "plan". It wasn't. People in the club are misleading people saying it was

I think there has been an understanding that TFG were always ready to buy and had the funds available to do so (the ability to wipe the MSP debt demonstrated that). The stumbling block, seemingly has been how much Moshiri has been willing to lose.

The question becomes, do you lose on your past investment or do you cling on in the hope that someone gives you 30/40% of your investment while you're on the hook for stadium, running costs, debt interest etc (when the longer that drags on the bigger that 30% becomes and more unlikely you'll get it back).

 

[catcherintherye]

Can anyone explain in layman’s terms for simpleton’s such as myself the finances on this deal , how do you swap debt for equity for example ?
Goes right over my head.

If you are owed money, you may receive that back in the form of equity in the business.

So let's say someone is owed 200m and the business is valued at 1bn, the business can issue shares to give them a 20% stake on the business.

It's not that uncommon. Debt isn't always bad, but it allows for a companies balance sheet to look better.

 

[catcherintherye]

Despite claims from the club including Colin Chong. The stadium was STILL not "fully financed". Up to yesterday!

That working capital discussed yesterday is to conclude it

Moshiri has capitulated as he simply was no longer willing to take responsibility for the clubs debt nor has the ability to complete the stadium

Getting R&MF paid off alone is going to be a boost for the club.

How we have been ran is an absolute disaster

Regardless of any claims from Colin Chong that this was all to a "plan". It wasn't. People in the club are misleading people saying it was

The RMF debt is hugely substantial. These people are leeches like payday loans.

The two biggest creditors are now ACap and RMF (and obviously Freidkin). Outside of them, there are very few creditors, the club is effectively debt free. Which also means free of 60m or so debt repayments.

TFG debt will be wiped out, I think ACap will be resolved, and it's reported RMF will be gone. The club is in a comparatively strong position, quite possibly the strongest it's been in, in 6 or 7 years. If you remove the debt interest repayments, it's close to being cash flow positive.

 

[Jebus_lives]

Oh my heart bleeds for him

Whether you like the result or not, he's invested massively in the club.

The position he leaves us in off the field is that we will be relatively debt free, we will have a brand new stunning stadium and a relatively low wage bill.

That wouldn't have happened had he not been the owner.

 

[pfim]

Objectively he could've held on and looked for more money or just drained the club of any profit.

He's walked away with basically nothing. You can criticise him for a lot, but at least he actually did invest.

Until June when the Friedken debt would have been due. He also couldn't finish the stadium without more capital.

 

[Jebus_lives]

Until June when the Friedken debt would have been due. He also couldn't finish the stadium without more capital.

He could've borrowed more and tried to hold on until the stadium was finished and looked to sell to clear his debts.

 

[detroiturk15]

Whether you like the result or not, he's invested massively in the club.

The position he leaves us in off the field is that we will be relatively debt free, we will have a brand new stunning stadium and a relatively low wage bill.

That wouldn't have happened had he not been the owner.

That would not have been the case had he sold to 777…imagine if that deal had somehow gone through sometime in 2023? The club would probably be in administration by now. He’s lucky that a top-notch buyer was interested.