Everton could be hit by financial blow after Donald Trump news – Stefan Borson
Everton prospective owner Dan Friedkin could be impacted by interest rates staying high for longer following Donald Trump’s US presidential election victory.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider those rates remaining high will be an issue for all European clubs, with the Merseysiders being a prime example because they have a lot of external debt.
Trump sealed a historic election victory over vice-president Kamala Harris last week, securing his return to the White House.
It comes at a time when Friedkin is looking to complete his takeover at Everton, who are currently in more than £600million worth of debt, after agreeing to purchase owner Farhad Moshiri’s 94.1 per cent stake at Goodison Park.
The Times reported on 13 October the American billionaire has previously backed the Republicans, often donating $20-30,000 (£16-23,000) at a time.
Everton could face debt issues after Donald Trump victory
But Borson suggested a Trump administration “doesn’t look fantastic” for Friedkin because his company sells imported cars.
He told Football Insider: “There is economic impact of a change of government, a Trump government and how the market perceives a Trump administration, and what that means in particular to the debt markets.
“We know that Everton are a club with quite a lot of external debt and I think most of that debt is on floating interest rates.
“If interest rates stay higher for longer, partly because of Trump’s ideas economically, then that will have a cost to potential buyers and Everton themselves.
“But I suspect that, overall, people like Friedkin will believe Trump is good for their business. If it’s good for their business, then it’s going to mean the deal becomes that bit more attractive.
“Although they are selling imported cars, which doesn’t feel like the best thing to be doing when you have got Trump coming in talking about tariffs of 10-20 per cent, particularly on foreign vehicles.
“It doesn’t on the face of it look fantastic for Friedkin, but they have been backing the Republicans, so they must have a better field than me.
“I think overall what we have seen with the debt markets is there is a fear around interest rates staying high for longer and that is an issue for the entire European football game because there are a lot of clubs that have got quite a lot of debt, and that debt is expensive.
“If it stays expensive for longer, that will continue to be an issue for clubs because it’s going to be a lot of money going out on day one and Everton are a prime example.”
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