The Friedkin Group value Everton at around £800m, with at least two groups showing interest in the club after confirmation the owners are looking to sell.
A statement on Friday confirmed TFG have retained investment bank Moelis and Company to find possible buyers for the club just two years after their full takeover. While some senior figures inside Everton were left surprised by the timing of the announcement, it was hardly a shock to sources who move in the world of football takeovers.
“TFG’s intentions have been clear for a long time,” one said. Reports in September that they were open to fresh investment in the club were part of a “fishing expedition” for potential buyers that had been partially successful, they claimed.
Sources believe a consortium mainly backed by US private equity is the most likely buyer of the club. Amanda Staveley’s PCP Capital Partners have previously distanced themselves from any auction for Everton, despite coming close to buying the club in 2023.
While nothing appears to be imminent in terms of a sale, the hope is that the statement gives Everton supporters and those who work at the club “clarity” on TFG’s intentions and helps to expedite a takeover. But with some big decisions on the horizon – not least a decision on David Moyes’ future – it leaves some uncertainty at Hill Dickinson Stadium.
Why now?
In short, TFG have done their sums. Twelve months ago The i Paper was told that the intention was to get Everton competing with the likes of Aston Villa and Newcastle as “best of the rest” in the Premier League. From there increased revenue from the stadium and smart recruitment would bridge the gap to the very top.
But they appear to have had an epiphany about English football and, in particular, rising transfer fees. Having invested close to £500m to put the club on a stable financial footing, there is now no great appetite to inject the same again with no guarantee that it gets them closer to Europe.
Throw in the fact that Uefa rules would prevent Everton and Roma from competing in the same European competition – with suspicions they favour the Serie A club – and Dan and Ryan Friedkin’s lack of public profile on Merseyside and it’s no great surprise this announcement has come.
Sources who know the Friedkins believe criticism of them on Merseyside after the disastrous end to the summer transfer window will have stung and will have played a part in this decision.
“They like to be popular,” one source who has worked with them told The i Paper. “They are very, very aware of what the fans are saying about them.”
It’s also a good time to attract investment according to those in the know. “There’s a lot of US private equity looking to get into the Premier League at the moment,” one top flight executive told The i Paper.
“With the new stadium, the history and the potential it really shouldn’t be difficult for Everton to find a buyer if they’re realistic about the valuation.”
How much do they want for it?
It’s understood that TFG’s valuation is close to £800m – which would represent a doubling of the £400m they bought it for. The club has around £380m of long-term debt although sources stress that is on “manageable” terms and would be factored into any deal.
“Everton are in decent shape for investment. Revenue was around £200m the last set of accounts, wages to revenue is around 75-80 per cent and I’d estimate the enterprise value to be somewhere between £700-750million,” football finance expert Professor Rob Wilson told The i Paper.
“Given the history, new stadium, positioning and financial results £800m feels like a fair valuation. A trophy asset hunter would pay the top end of that – if someone is looking for a return on investment it’ll be closer to £700m.”
Who could buy Everton?
It is understood at least two groups have shown an interest in Everton, with US-based consortiums the most likely buyer
The i Paper understands from club sources that there has been communication with Staveley’s PCP Capital Partners in recent weeks but sources close to the former Newcastle co-owner have denied they have any intention of buying Everton given their ongoing interest in West Ham.
PCP battled TFG for control of the club when Farhad Moshiri put the Toffees on the market two years ago but ultimately decided the deal “did not make financial sense”.
What does it mean for David Moyes?
Over the summer there were plenty inside the club who thought this would be Moyes’s last season at Everton. Given the friction with the club’s transfer committee over some targets – Moyes had knocked back some suggestions that he didn’t feel were the right fit for the Premier League – it felt like his days were numbered. He didn’t do any media in the close season and fan sentiment seemed to be turning against him.
Since then things have shifted considerably. Moyes handled the disappointment of the final weeks of the summer transfer window impeccably – memorably calling himself an “Evertonian” when asked whether he could empathise with fan frustration at the transfer window – and the team have made an unbeaten start to the season. He seems to be revelling in the underdog status and creating a siege mentality.
Moyes was the continuity candidate when TFG first took over, viewed as a steady hand at the tiller as the club stabilised off the pitch. Perhaps originally the idea was to find a more “progressive” coach in a few years but a potential sale means that is now a non-starter.
It feels like the chances of him staying have improved considerably. If there is no buyer before the end of the season, a short-term extension makes sense – provided Moyes is amenable to it.
How long will the process take?
TFG have signposted to the market that they want to sell so will be hoping for things to move quickly. But they made it clear in their statement that they will only sell to “parties who we strongly believe will be the right stewards to take the club forward and build on the momentum that has been established”.
A possible complication is that a number of other Premier League clubs appear to be on the market at the moment.
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If a buyer can be found quickly, a deal could be wrapped up before the New Year. But that feels unrealistic.
What does it mean for January transfers?
TFG have promised to “support the club in all ways necessary to achieve success on the pitch”. But anyone hoping for big signings in January is likely to be disappointed.
Sources told The i Paper that TFG are in “phase two” of their ownership of the club – where effectively Everton needs to be run on a sustainable basis. The sale of Iliman Ndiaye was agreed to fund signings and comply with Premier League financial rules. It created financial headroom to bring in a striker – a move that ultimately fell through – so there is the possibility of at least one incoming.
But until the future of the club is resolved, big money moves seem unlikely.
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