Delay in 777 Partners Everton takeover decision continues as more queries surface

Delay in 777 Partners Everton takeover decision continues as more queries surface

Prospective Everton owners 777 Partners are still awaiting the outcome of the Premier League’s owners and directors test, with hopes of a decision before the end of February diminishing.

The Miami-based investment firm initially agreed to purchase Farhad Moshiri’s

94.1% shareholding in the club in September.

However, they are yet to receive regulatory approval from the Premier League,

although approval from the Financial Conduct Authority has been secured.

Moshiri, who has become more involved behind the scenes in recent weeks, is reluctant to inject more of his own funds into the club.

Consequently, 777 Partners has provided approximately £180 million in loans to

Everton for working capital since the takeover agreement was announced.

The firm has indicated that they will not provide funding indefinitely and has been

pressing for a decision from the Premier League.

The funding provided has been crucial for Everton to meet payroll obligations and

ongoing costs associated with the construction of the new stadium at Bramley-Moore Dock.

The deal with contractors Laing O’Rourke was dependent on the club’s financial

stability, which they have managed to maintain so far.

While there was hope for a decision by the end of February, it now seems likely to extend into March.

The Premier League has raised further questions, indicating that they still

require convincing before making a final decision.

777 Partners, which operates in various sectors including sports, aviation, and finance, has faced scrutiny over its business practices. Recently, one of its subsidiaries, 777Re, had its credit rating downgraded by AM Best due to concerns about its financial strength and business scope.

Despite this, sources close to 777 Partners assert that the downgrade will not

impact their ability to acquire Everton or manage the club’s business.

They are actively addressing concerns with the aim of reducing reliance on illiquid investments.

The Premier League’s continued scrutiny suggests further questions may arise, although it’s unclear if they are related to the credit rating downgrade.

For now, Everton’s ownership remains uncertain, with 777 Partners providing crucial funding.

However, their loans do not have the same security as other major creditors, which could affect repayment priority.

The Premier League is likely to make a decision in March, considering the

implications of prolonged uncertainty on further funding and club operations.

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