Yahoo Finance Everton Gets Funding Offer From Firm Behind Previous Bidder
(Bloomberg) -- Advantage Capital Holdings LLC has made a proposal to invest in Everton FC, people familiar with the matter said, adding another unexpected twist to the takeover saga surrounding the English Premier League football club.
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New York-based A-Cap and a partner firm have submitted a plan that would see them refinance all of Everton’s existing debt and then take a non-controlling equity stake in the club, according to the people, who asked not to be identified discussing confidential information.
A-Cap is a major lender to 777 Partners LLC, the US investment firm that’s just failed with its own bid to buy the historic club.
“The proposal put forth is in the best interests of all stakeholders and the Everton fans,” a spokesperson for A-Cap said in an emailed statement. “This plan provides the quickest and cleanest path to finishing the stadium and sustainably funding the club’s operations. The plan is designed to stabilize Everton and advance the overall success of the club in the coming years.”
777 Partners agreed to acquire Everton last year but was unable to finalize a deal. That left the club and its owner, the businessman Farhad Moshiri, searching for a new buyer. Everton’s sizable debt includes a $200 million loan from 777 Partners.
Deliberations are ongoing and there’s no certainty they’ll result in a deal, the people said. A representative for Moshiri declined to comment.
A-Cap recently hired investment bank Moelis & Co. to review 777’s portfolio of football teams — a move that raised fresh questions about the Everton deal before its ultimate collapse.
Under new terms proposed by A-Cap, Moshiri would retain majority control of Everton, while seeing his 94% equity stake reduced, the people said. A-Cap and its partner would become the club’s co-owners, they said. The identity of A-Cap’s partner couldn’t immediately be learned.
777 Partners’ pursuit of Everton was dogged by financing problems and scrutiny of the investment firm’s management of its sprawling collection of businesses, some of which have run into difficulties with creditors. Australian budget airline Bonza, owned by 777 Partners, recently grounded all flights amid talks over the company’s future. 777 Partners had previously laid out ambitious plans to build a global airline portfolio.
Everton was among the founding members of the English Football League in the 1880s and is one of just a handful of teams that’s never been relegated from the Premier League. But it’s narrowly avoided dropping out of the top division in recent seasons despite heavy investment from Moshiri. The club has also taken on massive debts to build a state-of-the-art stadium in the Bramley-Moore Dock area of Liverpool in the northwest of England.
Another investor considering an offer for Everton is John Textor, the chairman of Eagle Football, an investment vehicle that holds an interest in Premier League club Crystal Palace FC. Textor has put his stake in Crystal Palace up for sale and has approached Moshiri about potentially submitting a bid for Everton, the person said.
A representative for Eagle Football declined to comment. Everton said in a statement in the wake of 777 Partners’ acquisition failing that it would continue to “assess all options for the club’s future ownership.”
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--With assistance from Michael Hytha.
(Updates with A-Cap statement in fourth paragraph)
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