Everton have been plunged back into a precarious position after another proposed takeover of the financially-hit club collapsed today.
The Friedkin Group (TFG), who also own Italian giants AS Roma, have pulled out of a bid to buy the club in the last 24 hours after concerns about the debt they would take on from the previous would-be buyers 777 Partners.
The Texas-based group, led by colourful character Dan Friedkin, entered into an exclusivity agreement with Everton's majority shareholder Farhad Moshiri four weeks ago. It was seen as a huge boost after a protracted saga with 777 officially fell through earlier in the summer.
But TFG cited worries about debts left behind by controversial Miami-based firm 777, who the club owe around £200million. 777 are now being looked at by insolvency experts after a series of lawsuits, allegations of fraud and delayed payments in the last year.
Although TFG will not be buying the club outright, the firm has already lent Everton money owed to another lender, MSP Sports Capital, plus paid the latest invoice owed to Laing O'Rourke, the constructor of the Toffees' new stadium at Bramley Moore Dock.
A joint statement between the club and TFG read: 'Both Blue Heaven Holdings and The Friedkin Group entered discussions in good faith to explore whether a sale could be agreed. Those discussions have concluded.
'The parties agree it is in both their interests for Everton to explore alternative options. The Friedkin Group will remain a lender to the club and is proud to have played a key role in enabling the new stadium to be built, which will help ensure a bright future for both Everton and the City of Liverpool.
'Blue Heaven Holdings maintains a positive relationship with The Friedkin Group and would like to thank them for the time and effort they have put into this process.'
The collapse of this deal puts Everton back into a worrying position. The club suffered two points deductions last season for breaking financial rules and had this takeover saga looming over them all year.
There have been green shoots of positivity during TFG's proposed takeover, with Everton being busy in the transfer window. They have signed Tim Iroegbunam, Jack Harrison and Iliman Ndiaye, while recouped some money for squad players to help balance the books.
That will be furthered when Amadou Onana's £50m move to Aston Villa is completed. Everton have stood tall in their valuation for highly-rated defender Jarrad Branthwaite and repeatedly insisted they do not need to sell him.
But after TFG's proposed takeover collapsed, it leads to questions around Everton's immediate future. If the firm were put off by the 777 debt, there is every reason that future potential buyers will have the same doubts when going through the club's books.
