Everton takeover AGREED as 777 Partners reach deal to buy Farhad Moshiri’s shares in club
EVERTON fans are in seven heaven after owner Farhad Moshiri confirmed that he has agreed to sell the club to US investment firm 777 Partners.
The Miami-based company, who will have to pass the Premier League‘s fit and proper persons test before the takeover, are desperate to add the prestigious English club to their business portfolio and have been locked in talks with the Blues.
British-Iranian Moshiri has been seeking a way out of the crisis club since his business partner and Russian oligarch Alisher Usmanov was sanctioned 17 months ago over his links to Vladimir Putin.
Now the businessman, who has faced numerous fan protests to sell the club after years of struggles on the pitch, has confirmed in a letter to shareholders that he is willing to sell up.
The letter read: “I am writing regarding my intention to sell my shareholding in Everton to 777 Partners.
“As you are aware from my open letter in July last year, I have been clear about the need to bring in new investment and complete the financing of our iconic new stadium at Bramley-Moore Dock, something that I have predominantly financed to date.
“The requirement for this has only become more apparent to me as we continue to see rapid changes in the nature of ownership and financing of top football clubs.
“The last two transfer windows have shown that the days of an owner/benefactor are seemingly out of reach for most and the biggest clubs are now typically owned by well-resourced PE firms, specialist sports investors or state backed companies and funds.
“In seeking investment, I have spoken to a number of parties and considered some strong potential opportunities. However, it is through my lengthy discussions with 777 that I firmly believe they are the best partners to take our great Club forward with all the benefits of their multi-club investment model.
“As a result of this agreement, we have an experienced and well-connected investor in football clubs who will help maximise the commercial opportunities, and we have secured the complete financing for our new stadium, which will be the critical element in the future success of Everton.”
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777 Partners was formed in 2015 by business entrepreneurs Steven Pasko and Josh Wander and they focus their efforts on seven core industries: Insurance, Aviation, Sports, Media & Entertainment, Fintech, Litigation Finance, Private Credit, and Sustainability.
To date, they have over 50 portfolio companies and operate in over 20 countries around the world.
777 Partners already has a number of ties in football, including owning 70 per cent of CR Vasco da Gama, which was the biggest transaction in the history of the Brazilian game, as well as Genoa in Serie A.
They have assets in aviation with low-budget airlines in Canada and Australia.
But, more glamorously, their investment in Hollywood film studio STX Entertainment has seen them involved in the production of the Oscar-nominated The Irishman and the eagerly anticipated Ferrari biopic.
Moshiri continued: “The agreement will see Everton become part of the 777 Football Group, which already includes Spain’s Sevilla, winners of the last UEFA Europa League, Genoa of Italy, Vasco de Gama of Brazil, and other storied clubs from across the world.
“Through that group, 777 is providing its clubs with access to world-class tools to support their football operations and global commercial opportunities. It is my belief that this expertise, combined with the collective strength of the clubs within the group, is what makes 777 the right fit for Everton.”
Moshiri continued: “I say that knowing our Club’s future is a positive one. The last few years have not been easy for Evertonians – and I am one of you. It has been tough to watch our struggles on the pitch, yet the foundations for a brighter future have been laid.
“In the case of the new stadium, we have made incredible progress over the last two years. We remain on track and on budget.
“Going forward, Everton will play in a stadium that will be the envy of the Premier League and beyond. A stadium that’s location will make it iconic throughout the game. A stadium that, most importantly, will give Everton a tremendous platform for growth and transform North Liverpool and the communities around it. I will forever be proud of what we have achieved.
“Finally, I would like to thank the Chairman and those who are acting in interim positions at the Club for their commitment during the process to bring new investment and opportunity to the football club.
“They will continue to provide support and guidance in ensuring the smooth running of the Club during the next phase of this process, which will include the transaction gaining the required regulatory approval from the Premier League, the Football Association, and the Financial Conduct Authority. I will continue to update on that process as it progresses.
“In due course, I will also be writing to shareholders more formally to ask for your support in the completion of the transaction by way of a shareholder vote. My intention, of course, will be to vote in favour of this investment, one which, as I have outlined and firmly believe, is in the best interests of our Club and its future.”
Moshiri owns 94 per cent of Everton and has splurged over £750m since taking over in 2016 — including loans of around £250m.
Until recently the 68-year-old hoped for a £150m influx of cash from MSP Sports Capital but baulked at the terms of the deal.
Everton suffered losses of £430m over the last four years, with the club now facing a Financial Fair Play probe and a potential points deduction.
And after two straight narrow escapes from relegation, boss Sean Dyche is already mired in another battle for survival — sitting 18th in the table.
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Meanwhile, the Daily Mail reported this week how Everton’s prospective new owners were late in making a £900,000 payment to their business partners at the British Basketball League earlier this summer.
The money has now been transferred, but it allegedly arrived over a month late “which in turn caused the BBL to be late in paying several of their creditors”.
777 agreed to pay £7m for a 45 per cent stake in the BBL two years ago but are “understood to have paid around £6m of the BBL ownership stake and have provided reassurances that the outstanding £1m will be delivered on time”.
The Mail had earlier reported that “777 made much of their money from pay-day loans and invested in budget airlines, with both enterprises attracting a series of lawsuits in the United States featuring allegations of fraud and racketeering”.
A host of those cases remain ongoing but Wander has not been personally accused of any wrongdoing.
Regarding the fit and proper persons test, Wander’s suitability will be assessed but this report stated that government sources had “expressed concern about some of his companies’ alleged activities”.
He pleaded “no contest” to three drugs offences 20 years ago but that is unlikely to be a disqualifying factor as the conviction is spent.
However, the Premier League could look at the numerous allegations made against 777 and sister companies in the American courts – although 777 deny the allegations and none have been proven in court.