A report this evening has stated that MSP Sports Capital have ended talks over buying a minority stake in Everton.

Everton owner Farhad Moshiri has been in discussions with the New York-based investment fund since the beginning of the year, with co-founders Jahm Najafi and Jeffrey Moorad, along with vice-president Peter Taylor, visiting Goodison Park for the defeat by Southampton back in January.

We reported in June that the investment into the club had been sought to aid the funding of the Blues’ new stadium build at Bramley-Moore Dock. MSP were understood to be acquiring a 25 per cent stake in the club through a preferential share structure – loans with warrants that can be converted into equity further down the line.

However, The Athletic are tonight reporting that what they called a “complicated deal” is “dead”, stating the “stumbling block being opposition from one of Everton’s existing lenders, Rights and Media Funding Limited.”

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They write that the Blues “have a loan facility with the Cheshire-based firm that the club has extended to £200million this year. That debt is secured via four charges on club assets and they have negative pledge clauses which mean the holder can demand repayment of its debt before the borrower takes on any further borrowing. With Rights and Media Funding Limited reluctant to give up its protection against possible default, MSP’s plan became unworkable. The lender’s main concern, however, was that MSP was not putting enough money into the club in return for its equity and Everton simply need more cash.”

The report continues that while the club will not be receiving any cash from MSP, the investment fund are “proceeding with the £100million loan to the stadium company, although this is now just a straightforward loan and not convertible debt.”

It also states that with MSP no longer considering investment into the club, “Moshiri is trying to find alternatives, including resuming talks with Miami-based investment firm 777 Partners.”

Moshiri took over Everton in February 2016. While he has poured around £750m into the club, it has struggled. The Blues currently sit bottom of the early Premier League standings after losing their opening two games of the season, 1-0 at home to Fulham and then 4-0 away to Aston Villa. Last season, they survived relegation on the final day of the campaign, while the season before, they secured their safety with one game to spare.

Off the field, Everton have lost more than £400m between 2018 and 2022 and in March of this year the Premier League referred the club to an independent commission for an “alleged breach” of profit and sustainability rules.

The Blues expressed their “disappointment” at the decision and stated they are “prepared to robustly defend” their position to the commission.

The ECHO has contacted Everton for comment.

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