Everton in chaos as Carlo Ancelotti sues former club and under-fire board members quit

Everton plunged into further chaos on Monday when it emerged they are being sued by former manager Carlo Ancelotti and three board members quit.

Chief executive Denise Barrett-Baxendale, finance director Grant Ingles and club legend Graeme Sharp, who had a non-executive role, issued a joint statement announcing their departure.

For most of the past six months there has been speculation about their future – neither they nor chairman Bill Kenwright have attended a game at Goodison Park since January 4 – but the announcement is still very important.

It was set against the notable backdrop of Real Madrid boss Ancelotti – who was in charge of Everton between December 2019 and June 2021 – taking the club to the High Court over ‘general commercial contracts and arrangements’.

Court documents do not go into the details of the claim. However, Mail Sport has learned of a dispute between Ancelotti and Everton over a tax issue related to a £2 million bonus paid to him.

The Toffees are entering a period of exclusivity with MSP Sports Capital over obtaining investment in the club

Directors including Graeme Sharp (second from left) and Denise Barrett-Baxendale have left

The future of chairman Bill Kenwright will become clearer in the next 48 hours, the club says

For a club that has been in financial trouble in recent years, this is the last thing they need. Everton only retained their Premier League status on the last day of the season after one of the most toxic and controversial periods in the club’s modern history.

Barrett-Baxendale, Ingles, Sharp and Kenwright were told to stay away from Goodison ahead of a game against Southampton on 14 January and the advice remained for the remainder of the season.

Angry fans protested and demanded majority shareholder Farhad Moshiri sack the board to move the club forward and yesterday’s departure will be well received in many quarters.

But there is no disguise of the trio’s grief in the statement, which added: ‘We have all fully committed ourselves during our time here and are disappointed to have made the decision to leave Everton.

“We have worked tirelessly with our chairman during a challenging period to deliver some of the most important projects in Everton’s history – projects that will secure and support the club’s commercial future for generations to come.

“It has been an honor and a privilege to serve as a director. We want to thank everyone who supported us during our time here. We wish the club we loved every success in the future.’

Talks about Kenwright’s future are ongoing and Everton will release a statement in the next 48 hours.

The club could be forced to sell key players like Jordan Pickford in the summer period

Kenwright said of the departure: ‘This has been a great board who have all worked tirelessly for the club whatever the circumstances. My relationship with Denise is known as one of the closest in football. I thank her for her many achievements, especially for her great work regarding our new stadium.’

Everton have entered a period of exclusivity with MSP Sports Capital to secure investment that would secure completion of construction of their new £500 million stadium at Bramley-Moore Dock and this development confirms that significant changes are ahead.

George Downing, a local real estate mogul and lifelong Evertonian, and Andy Bell, another Evertonian who founded the AJ Bell financial platform, have been linked to possible roles on a new board, but no offers have come in.

It is now very likely that Everton will have to sell players, with England goalkeeper Jordan Pickford and Belgium midfielder Amadou Onana sparking interest.