Everton new stadium cost increases by 50% as MSP Sports Capital provide £100m loan

Everton (Photo by Michael Regan/Getty Images)
Everton (Photo by Michael Regan/Getty Images) /

Everton are finally close to securing investment for their new stadium, Bramely-Moore Dock. Everton owner Farhad Moshiri had been in talks with multiple investment firms and it looks like MSP Sports Capital have emerged as the top contender to pump money into the Merseyside club.

At one stage, MSP Sports Capital and 777 Partners were closely linked with an investment. EFC have been seeking an investment since last season with Everton holding talks with both the aforementioned firms. At one stage, MSP looked set to pull out from the talks and focus on a complete takeover of Tottenham Hotspur but that did not materialize.

Back to Everton, 777 Partners were closely linked with a complete takeover of the club. It looked like 777 Partners had leapfrogged MSP in the investment race as the Miami based firm was now focusing on a full fledged takeover instead of a minority stake. The latest reports once again shifts into MSP’s favour, who are reportedly in negotiations with Moshiri for a minority stake.

MSP to provide £100 million loan to Everton for Bramley-Moore Dock

According to The Athletic, MSP are in negotiations for 25% minority stake and have already began providing funds in form of a loan through online stockbroker Andy Bell. This limited partnership would see Moshiri secure £100 million in form of loan which could be converted to shares on a later date.

The loan is being acquired mainly to finance the construction of the new stadium. Initially, the cost of the state of the art Bramley-Moore Dock was estimated to be £500 million but the cost has now shot up by more than 50% of the original estimate to around £760 million. The New York based investment firm could increase their loan commitment to £150 million to cover the shortfall in the stadium funding.

With MSP coming on board, the investment firm will be entitled to two seats in the board of directors which has raised questions over the involvement of chariman Bill Kenwright and CEO Denise Barrett-Baxendale beyond this summer.

Moshiri has so far failed to secure a loan from JP Morgan and MUFG because of Everton’s poor financial results over the last five years and their shambolic performance on the field in the last two seasons. There is a belief that once the minority deal with MSP is completed, the British-Iranian businessman will be able to raise the remaining funds through the loans from JP Morgan and MUFG as MSP will act as more reliable guarantors of the loans.

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When will the investment deal conclude?