Everton are not currently at risk of entering administration despite their ongoing ownership issues, sources have told Football Insider.
The Merseyside giants have now seen two takeover deals collapse over the past few months and find themselves in more than £600million worth of debt.
The Friedkin Group – spearheaded by Dan Friedkin – was handed exclusivity in June to pursue a takeover after agreeing a deal in principle with owner Farhad Moshiri to take on his 94.1-per-cent stake at Goodison Park.
But risks associated to the £200million loan provided to Everton by former prospective owner 777 Partners to pay the operating costs are believed to be behind the deal collapsing.
That has opened up questions about the Premier League club’s finances moving forward without a takeover deal in place.
But sources have told Football Insider administration is not looking likely at the moment and Everton should be able to remain solvent for the foreseeable future.
Everton not under administration threat despite cash-flow issues
Friedkin also supplied Everton with a £200million loan to pay off lender MSP Sports Capital – another firm that previously tried to buy the club – as well as working capital to complete the new stadium development.
The Texas-based firm’s loan is secured against the new stadium on Bramley-Moore Dock and the equity of Blue Heaven Holdings – the company that owns the Merseysiders.
Under the terms of the loan agreement, Friedkin could take control of those assets if the debt isn’t paid before the end of the upcoming season.
But Football Insider revealed on 1 August Moshiri will move to find a new lender for the debt if a takeover deal isn’t completed over the next nine months.
Everton are still expected, however, to face cash-flow issues later this year when there will be little money coming through the door at Goodison.
Finance expert Stefan Borson told Football Insider the Merseysiders are currently being too “aggressive” in the transfer market despite their financial concerns.
Sean Dyche’s side have spent more than £40million on the signings of Iliman Ndiaye, Tim Iroegbunam and Jake O’Brien, while Jesper Lindstrom has joined the club on loan.
In other news, Everton ready to accept defender offer as Scottish side swoop.
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