Everton begins searching for other buyers as 777 deal collapses
Earlier in the 2023/24 season, Everton announced that it reached a deal with 777 Partners. After all the trials and questions regarding the private investment firm’s finances, the Premier League failed to approve the takeover. That left Everton in limbo after receiving $200 million in loans from 777 Partners, money that it still owes the American firm.
Tariq Panja of the New York Times reported that those close to the situation claim Everton is opening talks with prospective buyers. The American group promised to help the club’s finances with the construction of its new stadium at Bramley-Moore Dock. Additionally, the club could be more fruitful in the transfer market to bring in marquee players. Consequently, it would not run the risk of violating financial fair play regulations.
The only issue for 777 Partners is that there was no guarantee it could do those things. The Premier League pointed to the group’s other ownership stakes, including Vasco da Gama. The Brazilian side was late on several transfer payments, which eventually led to a ban on all incoming transfers at the club. That does not set the best track record for an Everton side that has dealt with rampant financial struggles in recent years. Looking back to the group’s inability to provide necessary financial documents to the Premier League and the Financial Conduct Authority, issues have plagued this potential takeover.
As a result, Everton is now back on the market. It appears both the club and 777 Partners are in some form of debt, so the relationship is not over between the two. Still, it appears as if Everton will require some form of heavy investment to pull it out of this hole.
Off-field struggles couple lack of success on the pitch
A spokesperson for current Everton owner Farhad Moshiri says the deal with 777 Partners is still in place. Not long ago, Moshiri told fans that the deal was in the home straight, but that may have been a hopeful ambition.
Everton’s ownership dilemma has been one of the leading stories in the Premier League for the last several years. Dodgy financial records have led to the Premier League issuing separate points deductions. The first instance saw a 10-point deduction for breaches of profitability and sustainability rules. A successful appeal eventually reduced that down to six. Then, no more than one month ago, the Premier League took off an additional two points for a separate PSR violation. The six points off of Everton’s point total has forced the Toffees into the relegation race.
As things stand, Everton is just five points above the relegation zone. In fairness, it does have a game in hand on both Luton Town and Nottingham Forest. However, the prospect of bankruptcy and administration could plague survival. The aforementioned loan 777 Partners gave Everton helped stave off bankruptcy. Without the Americans’ funds, that administration becomes more of a realistic consequence.
For now, Everton will look to forget its off-field struggles when it plays in the Merseyside Derby on Wednesday. If anything, it can bring Liverpool into Everton’s struggles by ending Liverpool’s title chances.
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