Everton’s ownership crisis explained after MSP Sports Capital withdraw from investment talks

Everton’s hope for securing new investment have been dashed after MSP Sports Capital withdrew from talks about taking a minority stake in the club.

The original plan for the New York investment firm was to invest up to £150million in convertible debt that would become a stake of approximately 25% in the 145-year-old club - but unfortunately for the Merseyside outfit, that is no longer the case.

As a result, owner Farhad Moshiri is trying to find alternative investment, including resuming talks with Miami-based investment firm 777 Partners.

But what does it all mean for Everton’s future?

MSP withdraw from talks

MSP Sports Capital withdrawing from talks about taking a minority stake in the club is not want disgruntled fans wanted to hear.

According to The Athletic, the US group is proceeding with the £100million loan to the stadium company, although this is now just a straightforward loan and not convertible debt.

Rights and Media Funding Limited have provided a stumbling block as they have a loan facility with the club which was extended to £200million this year, but they are reluctant to give up its protection against possible default, MSP’s plan became unworkable.

Their main concern was that MSP was not putting enough money into the club in return for its equity and Everton simply need more cash.

What is happening with Bramley-Moore Dock?

The stadium is a huge project for the club’s future. The Athletic claim that it is unclear an MSP loan will now unlock the rest of the funding required to complete the stadium.

The original cost of construction was said to be £500million, but reports claim that has shot up to over £760million. That rise was meant to be compensated by loans from a number of companies, including MSP, but now it’s unclear.

Can 777 be their answer to securing more funding?

Moshiri is looking to secure funding from the Miami-based investment firm 777, in order to secure additional investment following the collapse with MSP. Previous talks were held this year, but, reportedly, those talks didn’t come to a finalised agreement.