Everton Football Club is poised to undergo a notable shift in its ownership structure with the imminent introduction of a new investor. American billionaire Christopher Sarofim, a distinguished investment manager, is set to join the ranks of Everton’s ownership group, signaling a potentially transformative era for the club. At 62 years old, Sarofim not only manages substantial assets but also holds a minority stake in the NFL’s Houston Texans, contributing valuable experience to his role in football.
Sarofim’s involvement with Everton is based on his agreement to become a part of the ownership entity known as Roundhouse Capital. In this capacity, he will serve as an observer on the club’s board, allowing him to contribute insights and influence discussions surrounding the club’s direction. Importantly, however, the day-to-day operations of Everton will remain under the aegis of The Friedkin Group (TFG), which took over from Farhad Moshiri about ten months ago after an exhaustive 18-month sales process.
The financial prowess of Sarofim’s family company, Sarofim International Management, is quite staggering, with assets estimated to be around $31 billion (£23 billion). This impressive portfolio is a significant factor in attracting Everton’s existing owners to bring Sarofim on board. His strategic participation is expected to broaden the club’s access to various funding avenues, which is crucial for Everton’s stability and future development. While Sarofim’s net worth is reported to exceed $3.7 billion, it appears that his initial investment will primarily benefit Roundhouse Capital rather than the club directly, meaning that no new shares will be issued for the time being.
As the first new investor to join the Everton ownership group under TFG’s management, Sarofim sets a benchmark for future investors. Unlike the more common approach taken by some American sports owners who involve celebrity investors primarily for public relations benefits, TFG seems intent on attracting individuals with specialized expertise and substantial connections that can enhance the club’s operations and growth potential.
Recent trends in football ownership have seen high-profile athletes and celebrities, such as Real Madrid’s Luka Modric, buy stakes in clubs like Swansea City. NFL star JJ Watt has invested in Burnley, while Leeds United has attracted notable minority shareholders, including Will Ferrell, Russell Crowe, Michael Phelps, and Jordan Spieth. This illustrates an emerging trend of combining sports expertise with high-profile endorsements in club ownership.
TFG has been remarkably proactive since assuming control of Everton, seeking to instill a new vision for the club and implement essential changes. Among these changes was the dismissal of manager Sean Dyche in January, with David Moyes stepping in to lead the team to safety in the Premier League. In another significant move, TFG has recruited Angus Kinnear, who will transition from Leeds to become the club’s chief executive this summer. Meanwhile, the current sporting director, Kevin Thelwell, has been notified that his contract will not be renewed upon its expiration next month, signaling a fresh approach to management.
Financial restructuring has ventured to the forefront of TFG’s strategy, as they proactively addressed Everton’s previously overwhelming debts, which exceeded £700 million at one point. Recently, a £350 million refinancing package has been secured to facilitate the construction of a new stadium at Bramley-Moore dock, scheduled to accommodate an impressive 52,888 fans and open this summer. This refinancing has been achieved at an interest rate that is less than half of the previous terms, translating into potential savings of around £50 million annually for the club.
In an innovative move, TFG is also conducting a feasibility study to assess the potential of transforming Goodison Park to serve as the new venue for Everton’s women’s team. The results of this study are expected to be finalized by the end of next month. This initiative not only highlights Everton’s commitment to promoting inclusivity and support for women’s football but also reflects a broader vision of community engagement and growth. Collectively, these strategic decisions underscore Everton’s dedication to enhancing its financial stability and infrastructure, laying the groundwork for a more promising future for the club and its passionate supporters.
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