One of the Premier League’s most embattled clubs keeps taking hits — this time to its bank account.
Everton FC has lost a potential investment of up to $190 million from U.S.-based investment group MSP Sports Capital.
Led by Phoenix Suns vice-chair and minority owner Jahm Najafi and longtime sports executive Jeff Moorad, MSP had planned to receive up to 25% of the club in return for the investment. But an exclusivity period surrounding the proposed agreement ended, and the deal is now dead, reportedly in the face of opposition from existing club lenders.
Rights and Media Funding Limited — whose loan facility with Everton was extended to $253 million this year — is said to have demanded “high tens of millions” from MSP before any investment funds reached the club.
The demise of the MSP deal extends a long run of difficulty for Everton.
The club barely avoided relegation last season and has started the new season in last place. A new stadium is under construction, but costs have risen more than 50% to $945 million. Without the enhanced revenue from the new facility, club losses have reached $500 million over the last five years. Everton is also under investigation for potentially violating Premier League spending rules.