Everton's takeover talks with the Friedkin Group have been called off after the two parties failed to finalise an agreement.

The Friedkin Group, which also owns Serie A club Roma, had agreed a deal in principle to take over the Premier League outfit in June.

Chairman Dan Friedkin and his group were granted exclusivity in talks after a deal to sell to Miami-based firm 777 Partners broke down.

"The parties agree it is in both their interests for Everton to explore alternative options," said the Friedkin Group and Everton's current ownership group Blue Heaven Holdings in a joint statement on Friday.

BBC Sport understands the major stumbling block has been a situation involving previous prospective buyer 777 Partners, whose proposed takeover plan had been backed by funding from financial insurers A-Cap.

The 777 group loaned Everton £200m during their attempt to take over and the issue was not paying that off, but the legal action that 777 faces in the US.

Friedkin Group did not know how long this would last for, was unclear about who was in charge of the loan, and was wary of any potential risk, so it decided to walk away rather than wait for the issues to be resolved.

The Friedkin Group, which injected £200m into the club and paid off a £158m loan to MSP Sports Capital and two local businessmen, will "remain a lender to the club", the joint statement on Friday added.

It is understood the loan from the Friedkin Group is a 'stable' one which means the group is not looking to call it in immediately and club sources have said Everton as a business is "absolutely not in a precarious position".

Farhad Moshiri, who bought a 49.9% share in Everton in 2016, is now the club's majority owner through Blue Heaven Holdings with a 94% stake.

However, Moshiri has faced growing criticism from supporters, with the club posting losses of just under £400m for the four years between 2019 and 2023.

Those losses saw the club docked a total of eight points for breaches of the Premier League's Profit and Sustainability Rules.

Moshiri announced in September 2023 that a deal had been struck with 777 Partners for a takeover, but that was followed by delays as the group struggled to meet the Premier League's ownership conditions.

That takeover deal collapsed in June when 777 failed to meet a deadline for share purchase agreement.

The Friedkin Group was the fourth party to be granted exclusivity by Moshiri without completing a takeover, after 777, Maciek Kaminski and MSP Sports Capital.

Everton have confirmed their move to a new stadium at Bramley-Moore Dock for the start of the 2025-26 season.

Football finance expert Kieran Maguire on BBC Radio 5 Live:

"The Friedkin Group was doing its due diligence into the finances of Everton and they had reservations about some of the outstanding loans.

"They were hoping that the lenders would take a reduction in what was owed from them, one of the owners 777 have a complicated back story.

"I think the Friedkin Group took the view that it was getting too complex and too risky from their point of view.

"They were going to inherit huge amounts of debt and if they couldn't guarantee that some of the existing lenders couldn't cut back on what was owed to them, they felt it wasn't a worthwhile deal to go ahead with.

"The view that will be taken by most of the investors and lenders - to date Everton is worth more as a going concern than a club that potentially goes into administration as they will lose any influence that they have over the operation of the club.

"We will see perhaps some additional commitment from the lenders because they fear the alternative is they could lose out substantially if the club does go into administration, which is the worst case scenario.

"It is a setback, but Everton is still an attractive proposition if the right price can be agreed for the club."

24 March 2023: Premier League refers Everton to independent commission over alleged breach of Financial Fair Play rules for the three-year accounting period ending with the 2021-22 season.

15 September 2023: Farhad Moshiri agrees to sell majority stake to American investment fund 777 Partners.

17 November 2023: Everton handed 10-point deduction by the Premier League for breaching financial rules. This is reduced to six points on appeal on 26 February 2024.

31 March 2024: Everton post losses of £89.1m for 2022-23 season.

8 April 2024: Everton deduced two points by the Premier League for a second breach of financial rules.

8 May 2024: Moshiri holds talks with 777 Partners looking to clarify the group's financial situation.

10 May 2024: It emerges that 777 Partners has employed finance restructuring experts as doubts grow over firm's ability to buy Everton.

14 May 2024: Moshiri extends deadline for 777 Partners to complete share purchase agreement until end of May.

1 June 2024: 777 Partners fails to meet takeover deadline.

14 June 2024: Friedkin Group agrees deal in principle for takeover of the club.

20 June 2024: Moshiri grants exclusivity in talks to the Friedkin Group.

19 July 2024: Friedkin Group and Everton's current owners announce takeover talks have ended without deal being completed.