The Friedkin Group will “instantly transform” Everton’s financial picture when the long-running takeover is concluded this week.
But the Premier League’s Profitability and Sustainability Rules (PSR) will limit its ability to make an impact in the January transfer window, The i Paper understands.
With a three-month regulatory process close to completion, the club is progressing towards a positive conclusion at the end of this week, ushering in a new era at Goodison Park after the tumultuous eight-year tenure of Farhad Moshiri.
Moshiri’s stewardship began with much promise but ends with the club saddled with debts of more than £600m and having breached financial rules twice.
A source said a lot of work has been done by the Friedkins to unpick that dire situation, allowing Everton to look to a future where the outlook will be investment on and off-the-pitch rather than just surviving.
It is understood that the Friedkins have already invested more than £200m since agreeing a deal with Moshiri in September, paying off existing debts while also meeting payment obligations related to the stadium and covering day-to-day running costs.
Although all the parties are reticent to reveal details of the terms of the sale which were agreed, Bloomberg reported at the weekend that Moshiri is being paid around £40m for his majority shareholding – which would be a reflection of the club’s financial distress considering rivals have been traded for 10 times that recently.
There is much work to do on restructuring Everton but insiders say that will begin on day one, with a commitment by the Friedkins to reshape the club as a business.
New directors have been lined up to start work immediately and a new executive team – made up of figures identified during the months in which the Premier League’s owners’ and directors’ test has been ongoing – will be announced shortly.
They will be responsible for making calls on the future of Sean Dyche and Kevin Thelwell, the manager and director of football who are out of contract at the end of the season.
Smarter, improved recruitment is seen as key to their success moving forward, with Thelwell admitting last month that the club has been “unable to invest” in recent seasons.
The intention is for that to change but there is an acknowledgement within the group that the club’s ongoing PSR battles mean expensive signings are unlikely in January.
While sources say “minds are entirely focused” on keeping the team in the top flight – and improving the squad however they can – there is a feeling that buying their way out of trouble is simply impossible.
Instead they will have to “box clever” in the transfer market, with perhaps a couple of targeted signings likely and maybe even some outgoings to balance that.
That situation will change in the summer, when a new regime in terms of cost control will give Everton more freedom to manoeuvre.
There are also 11 players out of contract in the close season, including Michael Keane and Dominic Calvert-Lewin.
“The Friedkin Group will be inheriting a legacy created by Farhad Moshiri which is going to mean that they’re going to have one, if not two, hands tied behind their backs,” football finance expert Kieran Maguire told The i Paper.
“Everton have lost money in recent seasons and because the PSR rules are always looking over your shoulder at the most recent three years, significant losses Everton have made in 2021-22, 22-23 and we presume they have made losses in 23-24 will act as a restriction on what they can spend in the current season.
“Having said that there is probably a degree of latitude if the club has a modest budget. We’re not saying the club can’t sign anyone and remember if you sign a player for £45m on a four and a half year contract then that works out as £5m until 30 June 2025 for PSR purposes.
“Everton will have the benefit of [new stadium] Bramley-Moore Dock, which is likely to increase the current level of matchday revenue from £17-18m, around a million a match. One would expect that to double or more.”
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