Everton’s owners The Friedkin Group (TFG) is facing a “PR headache” after a “crazy” share price issue has emerged at Goodison Park.
That is the view of former Man City financial adviser Stefan Borson, who exclusively told Football Insider shares in the Premier League side are worth almost nothing.
According to The Times on January 23, worried Everton fans think that each individual share in the club is now worth less than £175 following TFG’s takeover in December.
In November, shares were traded privately for £3,400.
Around 1,500 supporters possess approximately 8,000 shares in the Merseysiders, but their interest has been eroded as the total number of shares climbed from 135,000 to more than 1.6 million as part of the purchase process.
According to the article, a meeting between fans and the new owners was set last week to discuss their goals for the team.
Everton fans should have known shares were worthless
Borson stated that Everton fans who recently purchased shares should have understood they were a bad investment.
“First of all, it’s a handful of people that this impacts,” Borson told Football Insider
“This is about a group of individuals. When I say a few, I mean less than ten persons who purchased shares for around £3,400 each through Everton’s trading facility.
“When they bought those shares, I would have expected a smart investor – someone who was not buying them for emotional or sentimental reasons – to recognize that they were worthless financially.
“Because of the enormity of the debt and the fact that the debt came first, the equity was almost worthless. Paying £3,400 a share, which valued the equity piece very high, was insane.
“Ultimately, if you begin buying stocks, in the absence of fraud, it is very much buyer beware. It may be distressing to see your shares acquired by Friedkin for only £100, rather than the £3,400 you spent.
“Friedkin converted a large portion of the shares for approximately £175.” These shares are worth less than £100 because equity is worthless in this setting. It’s what it is.
“It’s a PR nightmare for Friedkin because the last thing you want to do is come in and appear to be stealing the club away from the fans, but that’s not the case.
“I believe the guy in the article is a South African Everton supporter and multi-millionaire. Honestly, he should have known better.
“If he’s lost money, or made a bad investment, it happens.
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