Tim Wigmore
Updated on: October 10, 2024 9:24 am GMT
Legal Battle Complicates Everton’s Sale as Bidders Remain Cautious
In an unexpected twist, Alisher Usmanov, a former sponsor of Everton Football Club, has initiated legal action against a company owned by the club’s owner, Farhad Moshiri. This lawsuit, filed in September 2023 at Moscow’s Arbitration Court, adds a significant layer of complexity to the ongoing efforts to sell the struggling Premier League club.
The Origins of the Legal Dispute
Who are the Key Players?
- Alisher Usmanov: The 70-year-old businessman and founder of the conglomerate USM, which previously sponsored Everton with approximately £12 million annually.
- Farhad Moshiri: Owner of Everton, who has a history with Usmanov, having served as CEO of several of Usmanov’s companies before stepping down following sanctions against Usmanov.
Details of the Lawsuit
Documents refer to Somelior Holdings Limited, a Cypriot-registered firm owned by Moshiri, as one of six defendants in Usmanov’s case. The company was reported to hold a 10% stake in USM but saw this reduced to 5% prior to the sanctions imposed on Usmanov after Russia’s invasion of Ukraine. The closed-door court hearing was approved due to trade secrets involved in the case.
The Impact on Everton’s Sale Process
Concerns Among Potential Buyers
Potential bidders for Everton have expressed concerns about Moshiri’s legal issues. Questions have arisen regarding the implications for sanctions law, particularly whether payments made to Moshiri from any sale would inadvertently benefit Usmanov, who remains sanctioned by the UK, the US, and the EU. Sources close to Moshiri suggest that UK laws would prevent him from making such payments, but the lack of clarity surrounding the case creates a challenging environment for prospective buyers.
Recent Developments in the Takeover Attempts
Moshiri has been attempting to sell Everton since the onset of the Ukraine conflict in February 2022. After a failed agreement with the American investment group 777 Partners, which could not secure Premier League approval, negotiations shifted to the Friedkin Group. However, that deal also fell through due to concerns about Everton’s significant debts to 777.
Current Prospective Buyer
John Textor, a co-owner of Crystal Palace, has emerged as the leading contender to acquire Everton. He is currently negotiating a plan to cover the club’s excess debt, which exceeds £600 million. However, Textor must first sell his shares in Crystal Palace before finalizing any agreement with Moshiri.
The Broader Context of Everton’s Financial Troubles
Sanctions and Their Ramifications
Usmanov’s sanctions, as described by the EU, label him as a “pro-Kremlin leading businessperson” with close ties to Russian President Vladimir Putin—a characterization Usmanov vehemently denies. Since March 2022, funding from Usmanov has been halted, significantly impacting Everton’s financial landscape and raising further questions about the viability of Moshiri’s ownership.
Takeover Transition Challenges
As Moshiri navigates these turbulent waters, he faces mounting pressure from fans frustrated by the club’s management. Issues such as poor transfer strategies and lack of foresight in club governance have led to calls for a swift change in ownership. A recent report indicates that Evertonians are keen for a breakthrough as the uncertainty weighs heavily on the club and its supporters.
The Future of Everton Football Club
As the legal battle unfolds and potential sales teeter on the brink of collapse, Everton’s future hangs in a delicate balance. The implications of Usmanov’s lawsuit could significantly delay the club’s stability and growth prospects. The combination of Moshiri’s personal legal struggles, pressing financial concerns, and the lukewarm interest from potential buyers creates a formidable challenge for the beleaguered football club.
Looking Ahead
Everton’s future is tied to the troubles of its owner, and fans are keeping their fingers crossed for a good outcome. The club really needs new owners, better money management, and a fresh team spirit now more than ever. As everyone in the football world pays attention, what Moshiri and new investors decide to do next will be very important for Everton’s future in the Premier League.
