Tribal Football

Football finance expert says Everton could "go into administration"

Football finance expert says Everton could "go into administration"
Football finance expert says Everton could "go into administration"
Football finance expert says Everton could "go into administration" Action Plus
Football finance expert Kieran Maguire has spoken about the future of Everton.

The Toffees were in the process of doing a deal for Friedkin Group to purchase the club from Farhad Moshiri.

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As their prospective new American owners went through due diligence, they eventually backed out of the move.

Maguire told BBC Radio 5 Live: "The Friedkin Group was doing its due diligence into the finances of Everton and they had reservations about some of the outstanding loans.

"They were hoping that the lenders would take a reduction in what was owed from them, one of the owners 777 have a complicated back story.

"I think the Friedkin Group took the view that it was getting too complex and too risky from their point of view.

"They were going to inherit huge amounts of debt and if they couldn't guarantee that some of the existing lenders couldn't cut back on what was owed to them, they felt it wasn't a worthwhile deal to go ahead with.

"The view that will be taken by most of the investors and lenders - to date Everton is worth more as a going concern than a club that potentially goes into administration as they will lose any influence that they have over the operation of the club.

"We will see perhaps some additional commitment from the lenders because they fear the alternative is they could lose out substantially if the club does go into administration, which is the worst case scenario.

"It is a setback, but Everton is still an attractive proposition if the right price can be agreed for the club."