A firm who is advising on a key aspect of the Everton takeover by The Friedkin Group has revealed the deal will be completed by early 2025 at the latest.
BCLP, which is working on behalf of Everton’s major creditor Rights and Media Funding (R&MF), says it has been working with the club, R&MF and potential buyers for 16 months and the first step of the Friedkin takeover is now on the horizon.
It says: “Rights and Media Funding Limited has been the senior debt at Everton Football Club for more than a decade. The deal announced today is the first stage of completion for The Friedkin Group, Inc. to purchase the overwhelming majority control of Everton football Club and it’s new stadium. The final sale is expected to be completed by the end of 2024 or early 2025, subject to Premier League, Football Association and Financial Conduct Authority approval.”
Securing a deal with R&MF was essential for any buyer of Everton Football Club. The firm, which is charging Everton interest of over 10% on its £225m loans to the club, is costing Everton £438,000 a week in interest and £23m in the last financial year alone, and was seen as a major obstacle to the club’s ongoing financial security.
R&MF first lent to the club under former chairman Bill Kenwright. According to an investigation by the Guardian into the lender: “RMF is a Cheshire-based company with zero employees that borrows its funds from opaque offshore companies in order to lend to football clubs. In total, about 70% of RMF’s loans have been provided to Everton, according to the most recent available filings to Companies House.
“Documents relating to companies in separate offshore jurisdictions suggest the trail of Everton’s RMF debt leads to Michael Tabor, a Monaco- and Barbados-based racehorse owner and leisure entrepreneur.”
R&MF were also able to veto potential takeovers, as it did when investor group MSP attempted to buy the club from owner Farhad Moshiri last summer. The news that the Friedkin Group has secured an agreement with R&MF is a major hurdle cleared for the potential new owners.
It is not known if the new owners would pay off the entirety of the R&MF loan or refinance it on better terms for the club.
Rights and Media Funding Director David McKnight commented: “Graham, Marc and the BCLP team did an extraordinary job representing our interests in this very high-profile transaction. We have worked with Graham and the BCLP team for a long time and have developed a very strong working relationship. The combination of their legal and sports sector knowledge is truly unique.”