Premier League rule change forces Moshiri to convert Everton loan to shares | OneFootball

Everton owner Farhad Moshiri has agreed to convert his £451 million loan to the club into shares if a sale to the Friedkin Group does not materialise before January 11, 2025.

This move is necessitated by new Premier League regulations on shareholder loans, which come into effect on that date.

The new rules, passed last week, require shareholder loans to be subject to a fair market value test. This change was opposed by Manchester City, but they lost after it went to a vote.

The rule is designed to prevent clubs from artificially inflating their finances through such loans.

Moshiri’s decision to waive the debt upon completion of the sale to the Friedkin Group is seen as a significant step towards stabilising Everton’s financial situation.

However, the potential conversion of the loan to shares raises concerns about the club’s compliance with Profitability and Sustainability (PSR) rules.

Everton have faced financial difficulties in recent years, including a points deduction for breaching PSR rules last season.

The club is currently under investigation for potential further breaches and is required to file its accounts early to address any issues.

The proposed takeover by the Friedkin Group, which owns AS Roma, is still subject to Premier League approval.

If the deal goes through, it would mark the end of a tumultuous period for Everton under Moshiri’s ownership.

Despite the off-field issues, Everton manager Sean Dyche has managed to keep the club above relegation. After miraculously ensuring safety last season, he must replicate that magic this term.

The Toffees, sat in 15th place on the league table, are on a four-game winless streak but will look to end that run when they visit Manchester United this weekend.