Recent filings at Companies House give a fascinating insight into the recapitalisation and restructuring of Everton Football Club by The Friedkin Group.

As was widely reported, The Friedkin Group took ownership of Everton Football Club on 19 December 2024. The initial details, as reported to the shareholders, can be found here.

The change of ownership and the restructuring of Everton featured three principal financial transactions: the conversion of Moshiri’s £450.75M shareholder loan into equity; the acquisition of Moshiri’s shares (his original 94.1% then 97.2% shareholding); and a capital injection to satisfy working capital needs and the repayment of third party lenders (predominantly Rights and Media Funding and the 777 Partners/A-CAP debt.)

The Companies House filing consists of a Return of Allotment of Shares posted yesterday by the Club and can be read here.

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The details of the recapitalisation and restructuring are as follows:

  • Conversion of the outstanding BlueSky Capital (Moshiri) shareholder loans of £450.75M at £3,000 per share – an issue of 150,250 new ordinary shares to Blue Heaven Holdings.
  • This enlarged shareholding (equating to 277,281 ordinary shares or 97.2% of Everton’s issued shares) was acquired by Roundhouse Capital Holdings Limited (The Friedkin Group’s acquisition vehicle) at an undisclosed price (more below).
  • Everton Football Club then issued a further 1,336,537 ordinary shares which were acquired by Roundhouse. This subscription provided the immediate working capital and funds to pay off Rights and Media Funding and 777 Partners/A-CAP loans
  • These shares were issued at an individual pice of £174.66 – giving a total value of £233.44M.

The final element is very important for the following reasons:

  • It provided the funding for the repayment of the Rights and Media loans (as confirmed by the satisfaction of their charges on 19 December 2024)
  • It confirms the reports from Paul Brown and Philippe Auclair on 8 January 2025 at Josimar that the 777/A-CAP repayment was not paid fully in cash. Josimar report an initial cash settlement of £66M with a future interest in preferred equity and warrants.

All of the above allowed The Friedkin Group to secure a 99.5% ownership, settle the shareholder loans and the third-party loans satisfactorily, and pave the way for a £300M senior debt package supported and arranged by JP Morgan, as reported by David Hellier of Bloomberg here

All of which recapitalises Everton Football Club, satisfies expensive third-party debts acquired under Moshiri’s reign, provides working capital,  and the long-term senior debt so essential to the viability of the new Everton Stadium at Bramley-Moore Dock.

It does, of course, come at a cost to existing private shareholders who retain the remaining 7,969 shares (0.5%) in Everton Football Club. Whilst the value of the club has risen due to the recapitalisation and restructuring of debt, as is always the case, existing shareholders pay a heavy price for the mismanagement of the previous owners.

The issuing of new shares at £174.66 per share is in stark contrast to the previous most recent traded price at auction on 29 November 2024, just prior to the Friedkin takeover, of £3,400 per share.

It also suggests that the 127,031 shares in Everton Football Club previously owned by Farhad Moshiri through Blue Heaven Holdings had a value of only circa £22M – a sharp contrast to the £750M injected into Everton by Moshiri since 2016 combined with the estimated £135M spent on acquiring shares from the previous shareholders.

In summary, the total cost of acquiring, restructuring and refinancing Everton Football Club comes in at just short of £1B – a reflection of the dire state of Everton’s finances pre-takeover but also an indication of the potential future value of the club should The Friedkin Group successfully address the main issues on the pitch and the future commercial direction and management off the pitch.

Reader Comments (6)

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Michael Kenrick
1 Posted 09/01/2025 at 15:54:25
Thanks for this, Paul.

It's quite a shocker to see the private share values more than decimated by the takeover! I make them to be now with just 1/17th of what they were… almost 1/20th if you go back to the auction price.

But I have a bit of a problem with that. Wouldn't the first transaction at £3,000 per share put the total value of the club at £855.75M? Perhaps a little on the high side considering the recent financial trials and tribulations the club has endured.  

But the final transaction – and that huge raft of new shares – cuts the apparent value of the club to a pathetic £283.26M. That is a humongous drop.

But it revalues Roundhouse's initial buy-in (277,281 shares) to around £48M – which is close to the £50M I've seen mooted as the amount Moshiri got in return for his hundreds of millions.

They're all just crazy numbers in the end. But the amount of money that has disappeared is just astounding.

Or perhaps it hasn't disappeared at all… it's sitting there gleaming in all it's shiny beauty astride Bramley-Moore Dock!

Kevin Molloy
2 Posted 09/01/2025 at 16:02:58
Jenny'll be going ape shit.
Michael Kenrick
3 Posted 09/01/2025 at 16:22:53
Good point, Kevin.

Kenwright's last remaining nest-egg of 1,750 shares goes from nearly £6M to a little over £300k.

Time to re-mortgage the house, methinks!

Tony Waring
4 Posted 09/01/2025 at 17:06:19
At the end of the day any Everton fan who buys a share (or more) is'nt doing so to make a fortune. It's just one way of saying " I.m a true blue" n,est ce pas ?
John Chambers
5 Posted 09/01/2025 at 23:58:09
So am I reading this right? We used to owe Moshiri £450m, Rights & Media £250m and A-Cap £200m, a total of £900m as part of the "old" expenses of BMD and running the club. All of which have, effectively, been paid off.
We will have a new loan/facility of £300m from JP Morgan but that is all available as "new" working capital for the club.
Steve Oshaugh
6 Posted 10/01/2025 at 01:37:55
I am so used to reading dire news about our finances that I can't seem to comprehend/believe what seems to be good news. I'm assuming this means that the club frees up quite a lot money in interest payments each year going forward but given the extent of the losses there must still be something more to trim? Assuming that TFG haven't spent a billion to still end up making big losses each year.

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