The US-based investment fund MSP Capital have reportedly pulled out of talks over buying a minority stake in Everton.
Everton's owner Farhad Moshiri has been in discussion with MSP for numerous months now, after high-ranking members of the group visited Goodison Park back in January.
The club were looking for further investment to help fund their new stadium, which is currently under construction at Bramley-Moore Dock.
The Liverpool Echo initially reported on the supposed interest from MSP earlier in the year, but The Athletic now claims that the deal is dead.
It was believed that the firm were in discussion over buying a 25% in the club, while providing loans for the payment of Everton's new stadium.
In what is being described as a "complicated deal", the group have reportedly pulled out because of opposition from one of Everton's existing lenders.
Despite the group pulling out of talks surrounding a minority stake, it is believed that they will still provide a £100m loan in order to help finance the stadium.
This loan will be a straightforward one though, and the club will not receive any cash from MSP Capital.
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The report also states that Moshiri is not giving up hope of finding investment, and is looking to reopen discussions with another US investment firm - 777 Partners.
Everton supporters have been hoping for investment all summer to help bring money in both to spend on the new stadium and on strengthening the squad.
However, the latter has not happened, with 19-year-old Youssef Chermiti remaining the only player that Everton have spent money on this summer, with just a week left of the summer transfer window.
Chermiti is evidently not ready for first-team action either as he was not even named in the matchday squad for the side's 4-0 loss at Aston Villa on Sunday.
That result leaves Everton bottom of the Premier League after two matches, the first time that they have found themselves 20th since October 2010.
Everton are yet to score this season, and despite selling Ellis Simms and nearing on letting Demarai Gray leave, the club have still not signed a senior striker.
The news announced this evening, paired with Everton's woeful start to the season may make the atmosphere at their home clash with Wolverhampton Wanderers one of increased anger and frustration on Saturday.
Andrew Delaney
