If there is a Premier League club that merits the label of ‘sleeping giant’ it is Everton. Goodison Park badly needs investment or even a replacement. The board has been trying to attract investors for years, but without success.
Now it looks as if American investors may be coming into the club, following the recent example of Crystal Palace. The travails of Randy Lerner at Aston Villa or the challenges faced by Fenway Sports Group at Liverpool don’t seem to have put them off.
If there is a Premier League club that merits the label of ‘sleeping giant’ it is Everton. Goodison Park badly needs investment or even a replacement. The board has been trying to attract investors for years, but without success.
Now it looks as if American investors may be coming into the club, following the recent example of Crystal Palace. The travails of Randy Lerner at Aston Villa or the challenges faced by Fenway Sports Group at Liverpool don’t seem to have put them off.
According to this morning’s Times, an American-led consortium is hoping to complete a takeover of Everton within the next six weeks. The group has signed a head of terms agreement for the deal, which could be worth about £200 million, and is performing due diligence on the club’s accounts.
Bill Kenwright, the Everton chairman, has granted John J Moores, Charles Noell and their partners — believed to include investors from both sides of the Atlantic — a period of exclusivity to examine the finances at Goodison Park. That expires at the end of next month, when a decision will be made about whether to push ahead with a deal.
Moore and Noell were involved in a similar deal to invest in Swansea City 12 months ago, but the talks fell through after doubts among some fans’ representatives about accepting foreign investment.
Both men made their money in technology. Moores founded BMC Software which eventually became one of the biggest firms in the field in the United States. In 1994 he bought the San Diego Padres baseball franchise for $80m. He sold up in 2012 for ten times his initial stake.
In 1992 he co-founded JMI Equity, a venture capital house, with Noell.
Everton’s debt, which stands at £31m, is manageable. At £125.6m last year their turnover is at record levels and will be boosted by the new Premier League broadcasting contract.
There is, however, a £22m 25-year loan from Bear Sterns, taken out in 2002 and secured against future season ticket income. There are also the almost annual cash injections from Vibrac, a company registered in the British Virgin Islands, who offer Premier League clubs money against future television income.
The ownership structure is quite complicated. Bill Kenwright owns little more than a quarter of the club. Robert Earl has 23 per cent of the shares and Robert Woods another 19 per cent, with a host of smaller shareholders owning the rest.