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Takeover twist could see Everton link with Chelsea’s Todd Boehly via £400m deal
Everton could soon have formed an indirect ownership link with Chelsea and Todd Boehly that is one of the first of its kind in the Premier League.
Cash-strapped British-Iranian billionaire Farhad Moshiri has been in exclusive negotiations with Crystal Palace co-owner John Textor for a fortnight over a deal to ta🅠ke over Everton.
There are seemingly endless layers of complexity to the talks, relating to Everton’s debt picture, the Premier League’s rules on dual ownership, and Textor’s ♛attempts to publicly list his Eagle Football Group.
A speedy resolution is needed given that most analysis suggests Everton will face cash flow issues before the turn of th꧃e new year without a new o💯wner.
Significantly, it is unlikely that Everton ജcould even take on more debt as a short-term solution as it appears that most of their assets have already peen pledged as security for their existing loans.
Like Everton, Chelsea are in the crosshairs of the Premier League’s Profit and Sustainability Rules (PSR) enforcers after their extraordinary, scattergun approach to recruitment under Todd Boehly.
Although their PSR position is, to put it lightly, tenuous, Chelsea are not strapped f🍌or cash as Boehly and Clearlake have huge reserves draw from.
And the source of a portion of their wealth means they m🍃ay indirectly become bedfellows with Everton if Textor is successful in his attempts to buy the club.
Ares: The link between Everton takeover hopeful Textor and Chelsea
It is not unco🔯m🎃mon for football clubs to borrow from financial institutions – and the height of this kind of arrangement came during the pandemic.
In September last year, were among the outlets to repo🍒rt that Chelsea had struck a £400m debt deal with Ares Management.
The deal was described as a preferred equity arrangement and was struck with 22 Holdco Limited, the vehicle set up by ꦉTodd Boehly and Clearlake to acquire Chelsea.
Interestingly, Ares is also one of the major backers of Textor’s Eag🏅le Football Holdings, owning 5.2 per ce♛nt of the group’s equity as a major lender.
It was reported last August that Ares were considering chan♛ging the structure of its agreement with Eagle Football in order to satisfy the Premier League’s dual ownership rules.
However, However, Eagle Football’s website still lists Mark Affolter as a member of the boa☂rd of directors.
The latest update to the Premier League’s handbook stipulates that an owner or director will be disqualified from owning a club if they ‘either directly or indirectly they are involved in or have any power to determine or influence the management or administration of another Club or Football League club.’
As the Premier League has seemingly not flagged any conflict of interest between Crystal Palace and Chelsea, the 💙Ares arrangement must be deemed within the rule🍸s.
But, with Ever🍸ton perhaps about to be the latest club pul🎃led into a multi-club ownership orbit, it does raise an interesting question about the tightening bonds between football and private equity.
Textor’s suitability to buy Everton
As Textor has a history of borrowing to fund other acquisitions in his multi-🌃club network, some analysts have questioned whether he is the right person to take Everton forward.
The Toffees need a high-liquidity individual or group to help them service their debt and ensure the move to the new stadium at Bram🎉ley Moore Dock is fully funded.
However, the saꦓle of his Palace shares will – if he can find a buyer – generate £150-225m for Textor.
His plans to list Eagle Football Holdings on the New Yo𝔍rk Stock exchange are also mooted to raise significant capital, whꦇile around £150m has also been offered by banks.
Textor sees himself as a disrupter and has created drama wherever he🦋 has been in football, most notably with his crusade against perceived corruption in Brazil through his ownership🎐 of Botafogo.
There is no doubt thaꦑt disruptors have a history of success in football ownership.
But some supporters have concerns about whether Textor is the righ🎃t fit for their club, who are desperate for stability after years of turbulence.