According to Kieran Maguire, Everton supporters would have sympathy for Andy Bell and George Downing, who are located in Liverpool.
With a combined net worth of £865 million (Bell, £365 million, and Downing, £500 million), the two extremely wealthy Toffees creditors have expressed interest in purchasing the team and even forgiving their loans.
Farhad Moshiri is still committed to selling the club, but it looks like it will be difficult for him to do so given that he might have to write off the £450 million in shareholder loans that the team has received.
On May 10, the Liverpool Echo was informed by Maguire, a financial expert, that “it’s like if your house is worth £400,000 and your mortgage is £600,000.” It’s difficult to see why Moshiri would accept any payment at all for the football team.
It is possible that some individuals will require haircuts here. To try and restructure the debt and bring it down to a manageable level, a variety of levers can be pulled.
“If someone like Andy Bell or George Downing, who have contributed some funding, were an Evertonian, they probably would understand the situation and work to find a solution that benefits the team. It is more challenging for someone like Rights and Media Funding Limited because they are not emotionally invested in any of this.
Everton future hangs in the balance amid takeover uncertainty
As the takeover story continues to take unexpected turns, Everton’s future is in jeopardy.
Due to financial and legal difficulties, 777 Partners’ chances of purchasing the team are now slim, and attention is now focused on MSP Sports Capital as a possible new owner.
However, the club faces significant debt challenges, including a cash flow deficit and debt obligations.
MSP or any new owner will need to restructure the club’s debt significantly, possibly converting loans to equity or writing off shareholder loans.
The success of any new ownership will depend on their ability to quickly reduce the club’s debt to manageable levels.
This could involve raising equity to pay down debt, refinancing existing debt on more favourable terms, and potentially selling players to raise funds.
Despite the grim possibilities of administration, the club is said to have funding in place through the summer and will receive central funding from the Premier League based on performance.
The Toffees’ survival depends on finding a new owner who can handle the financial difficulties and bring stability and competitiveness back to the team.
