Everton takeover could collapse as new owners face up to £300m compensation bill
Everton are facing the prospect of seeing American investment firm 777Partners walk away from a £500million deal to buy the club following the news that they could be facing a £300m compensation bill.
Majority shareholder Farhad Moshiri's proposed sale suffered a hammer blow on Friday when the Merseysiders were rocked by a Premier League decision to dock them 10 points for failing to meet profit and sustainability rules.
The reality of being plunged into another relegation fight was compounded when an interim hearing held before the same independent commission ruled that Leeds, Leicester and Burnley could purse a compensation claim that would take Everton to the brink of the financial abyss - and virtually guarantee that Sean Dyche's side will be playing in the Championship next season.
It is understood that 777Partners included a series of clauses in their deal with Moshiri that would see the price to buy Everton slashed if the Premier League's case against the club was upheld. But Everton are now faced with the prospect of having to pay three of the clubs relegated in the last three seasons £100m each in compensation.
It is unlikely that 777Partners will agree to foot that bill given the club already has debts in excess of £500m. Everton don't have the funds to pay any significant compensation bill. If they are forced into administration they would incur a nine-point penalty that would leave them needing a miracle to beat the drop.
Everton chiefs face transfer backlash from fans after deadline day disaster
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777Partners are due to purchase Everton in a long-awaited £500m takeover (PA)Leeds, Leicester and Burnley were given 28 days to decide whether they are going all the way in their fight for recompense. Everton's shellshocked board are now in the process of lodging an appeal against a ruling which instantly plunged the team into the bottom three.
If the punishment is upheld they will be facing a battle for the future of a club that is supposed to be moving into a new 52,888-capacity stadium next year. Their argument that stadium costs were amongst a number of mitigating factors which saw them fail the Premier League's PSR rules by less than £20m were given little credence by the panel.
Potential new owners 777Partners were already facing a challenge to pass the league’s fit and proper person's test. But they have been lending Everton £20m-a-month to meet the wage bill and could become creditors if the worst case scenario unfolds.
Everton goalkeeper Jordan Pickford refused two talk about his club’s crisis after keeping a clean sheet in England’s 2-0 Euro qualifying win over Malta at Wembley on Wednesday night. But Three Lions boss Gareth Southgate has no fears that his No. 1 will not be fazed by the crisis at Goodison.
Southgate said: "I haven't spoken to Jordan about it. But he has coped really well with a couple of really difficult seasons at Everton, where they've been in the lower reaches of the league."
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