John Textor’s Everton Bid: New Investment, Moshiri’s Dilemmas, and Implications for the Premier League

John Textor, the American entrepreneur with a growing portfolio of football clubs, has sparked significant discussion regarding his potential acquisition of Everton. Farhad Moshiri, who has owned the club since 2016, has been in talks with multiple parties for over two years, and Textor is now in exclusive negotiations. His entry into this long-running saga, however, raises numerous questions about his ability to fund the purchase, his involvement in other clubs, and the financial complexity surrounding Everton.

Textor’s Plan: Equity Funding for Everton

One of the most striking aspects of Textor’s proposal is his emphasis on new equity funding. In a recent media conference at Lyon, one of his clubs, Textor clarified, “The potential acquisition of Everton would be funded by new equity that I’m investing.” This statement signifies that he is planning to use his own cash and that of “a couple of friends with terrific resources” to buy Moshiri’s 94% stake. The promise of a debt-free acquisition would certainly be welcome news to Everton fans, given that the club is already saddled with over £1 billion in debt.

However, this does not mean Textor will entirely alleviate Everton’s financial woes. Most of the club’s debt is tied up in loans, notably a £200 million loan from 777 Partners, a firm now facing insolvency. Textor’s plan involves negotiating a reduced repayment figure for this loan, potentially as low as £50 million. While this may provide some relief, there is no guarantee the creditors will agree to such terms.

Textor’s Complex Web of Club Ownerships

Textor’s involvement in multiple football clubs adds further complexity to his Everton bid. He currently owns stakes in Botafogo (Brazil), Lyon (France), RWD Molenbeek (Belgium), and a minority interest in Crystal Palace (England). Premier League rules stipulate that no individual can have a significant interest in more than one club, so for Textor to buy Everton, he must first sell his stake in Crystal Palace.

This aspect of the deal has stalled Textor’s progress, as he continues to negotiate the sale of his Palace shares. The challenge lies in the fact that while he owns 45% of Palace, his voting rights are limited, and his partners, David Blitzer and Josh Harris, have the right to match any offer for his shares. Although Textor remains confident of selling his Palace stake soon, time is running short, with Moshiri’s November 30 deadline looming.

Concerns Over Financial Viability

Textor’s financial situation has drawn scrutiny, with several sources expressing concerns about the over-leverage of his Eagle Football group. He has borrowed heavily from Ares Management to finance his various football acquisitions, and his plans to float Eagle Football on the New York Stock Exchange remain uncertain.

Some in the football industry remain sceptical of Textor’s ability to complete the Everton deal. While he has publicly maintained that his financial partners are solid, his track record with Lyon, where tensions with former owner Jean-Michel Aulas have hindered progress, suggests potential difficulties ahead.

As Matt Slater wrote in The Athletic, “Cards on the table, I don’t think there’s a 90 per cent chance he will be the next owner. But, yes, I’m telling you there’s a chance.” Slater’s caution is well-founded given the financial and legal hurdles Textor still faces.

Our View – EPL Index Analysis

From an Everton fan’s perspective, John Textor’s potential takeover presents both excitement and uncertainty. On the one hand, the idea of a debt-free acquisition brings hope. The club’s current financial strain, exacerbated by years of underperformance and the mounting costs of their new stadium, has left supporters frustrated. Textor’s promise to use equity rather than adding more debt could be the fresh start Everton needs.

However, there are concerns. First, Textor’s history with Lyon and his ongoing battle to exit Crystal Palace raise doubts about whether he can truly provide the stability Everton requires. His involvement in multiple clubs, along with the complex financial deals that underpin his portfolio, may prove more of a hindrance than a help.

For Evertonians, the immediate priority is survival in the Premier League, but long-term, the club needs sound financial management and clear direction. Textor’s bid might be the lifeline Everton needs, but the complexities involved, particularly with his existing debts and ongoing commitments to other clubs, suggest caution. While his offer sounds promising, Everton supporters should prepare for a drawn-out and potentially bumpy process.