Friday, September 29, 2023

Everton suffer huge investment blow as MSP Sports Capital withdraw from talks over minority stake purchase

Everton’s hopes of welcoming new investment into the club have taken a hit as MSP Sports Capital have withdrawn from talks.

It was reported in May that the US-based investment group signed an exclusivity agreement with the Toffees.

Everton’s majority owner Moshiri may need to look for other investmentsgetty

The Toffees are continuing work on their new £500million stadium, meanwhileGetty

Majority owner Farhad Moshiri has come under increased criticism in recent seasons amid a lack of success on the pitch.

Fans have been unhappy with leadership of the club, with Everton off the back of another relegation scrap.

MSP Sports Capital had hoped to invest in the club but as reported by The Athletic, they have now left talks.

They were planning to pump £150million into Everton in the form of convertible debt that would roughly equate to a 25 per cent stake.

It’s said two-thirds of the money was set to help the construction of their new stadium at the Bramley-Moore Dock, with the rest for the club.

However, MSP Sports Capital’s exclusivity period with Everton is now said to have concluded, with the deal described as ‘dead’.

Rights and Media Funding Limited, based in Cheshire, are an existing lender at the Toffees, who extended their loan facility with them to £200million this year.

Four charges on club assets are said to secure such debt and the firm are able to call for repayment of the debt before any further borrowing takes place from the borrower, in this case Everton.

Things are looking gloomy on the pitch for Everton, who have lost their opening two Premier League matches this term, conceding five goals in the processGetty

As a result, MSP Sports Capital’s plans have fallen through as Rights and Media Funding Limited are unwilling to relinquish any form of protection they have against default.

The report also says that they believe Everton need more cash, with concerns also raised over how much MSP Sports Capital would put into the club in return for their equity.

Such news now leaves question marks over the potential future investment at the Toffees, although the New York-based investment group will still offer the £100million loan to the Everton Stadium Development Company for their new ground.

Everton were reported to be close to a £600million takeover by 777 Partners earlier in the year, but this has not come to fruition.

Sean Dyche’s side are bottom of the Premier League with two defeats from their opening two league fixtures, conceding five goals in the process.

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