777 Partners takeover process is 'well underway'

I can only assume this is just verifying information that has already been provided. Yet this article just refers only to an NDA which usually precedes an offer.

Certainly Moshiri, if not 777 Partners, were speaking at the time as though a deal had been concluded with an offer accepted. This sounds like more than due diligence taken at face value. Perhaps it's an opportunity to re-negotiate terms as sometimes happens with a house purchase?

Nothing from the club. Maybe they are under an NDA, but the prolonged silence from those is deafening. And they've ignored for ages now, so we keep going on our own.

I am still buzzing after Saturday and looking to Villa and Luton.

The rest can wait.

I think paragraph 5 is a direct quote from his book, so it's applying to the process as a whole. I think only those on the inside will know exactly where in the process they are – exactly how much of the due diligence is done and how much remains to be done.

Obviously there was enough understanding of the finances for there to be an announcement of the proposed takeover. Note that the terms, the cost of the deal, the value placed on Moshiri's shares, have not been divulged, while other sources have suggested that the terms, cost and value may be performance-based, and therefore not fixed.

I think everyone needs to take a step back and let the process play out, rather than forever second-guessing it, like we seem to have had every day since it was announced – with Paul the Esk notably predicting it is doomed to fail.

Let's just see what happens.

This just means 777 Partners are a loan agent to the tune of £20M and have an excuse to digest the behind-the-scenes numbers and wider contracts within the club.

There are quite a few journos in my family and I rather think that they would regard a newspaper printing excerpts from a book about the generality of an acquisition process as well not exactly news journalism as such.

Or to (almost) quote Dyche, a news piece that is 'much hullabaloo about nothing much...'

Supporters like you will keep this club breathing long after Kenwright & Co have departed!

Well, we've just got to wait and see if 777 Partners get over the hurdles before a deal is done. But it seems to be moving ahead, what with the loan to the club.

He must have a bald spot.

There are so many skeletons in our financial cupboard, it takes a particular buyer to make sure those skeletons stay where they belong. Dan Meis the intermediary?

If I was 777 Partners, I am afraid I wouldn't believe anything unless it's been triple checked by someone who knows all the scams. Sadly, money and trust are not good business partners.

I know what you mean but that is the level of our beloved local rag.

To be honest, though, I was glad to see them publish this story as it counters the latest clickbait nonsense that even the Nationals have gotten hold of.

The level of on-going negativity about 777 Partners and this deal seems out of all proportion to me. But I could be well wrong and those skeletons lurking in the closets are just girding their loins ready to sally forth…

Everton's future hangs in the balance - and the ECHO is publishing a special report online and in print covering all aspects of 777's proposed takeover deal.

We'll be releasing a series of content with a 6-page special in Tuesday's paper and further content online. With exclusive interviews, opinion and analysis on the takeover, you will get the most detailed analysis on the deal anywhere.

All's that we can do is speculate. I think I've said that as many times as I've said how much I despise Bill Kenwright on these pages.

Although I tend to agree with Paul The Esk regarding this deal, I do think it's Michael K who has made the most sensible point when he said maybe it's better taking a backward step and waiting to see how the process develops.

After it has been raped and pillaged by none other than Moshiri and the Maggot ! They won't be worrying where their next paycheck not only, will be coming from, but if it will arrive too !

Or Donald Trump Junior, Oh wait " a pick-pocket or pimp" if the cap fits. . .

When all those boxes are ticked, you go 'Unconditional' money changes hands and a date...pretty soon, usually 2 weeks or so... is set for you to pick up the keys and you're in.

How hard can it be ?

And just what the hell is this "data room"?

Might it just be somewhere a bizarre self-convinced accountancy expert, allied by a shyster self-proclaimed football genius choose to stash what little they want third parties to ever see?

Do such self-proclaimed experts/geniuses have "data rooms" elsewhere in the world as well, where massive tax evasion/unaccountability is the norm, you know, the sort of places Russian bent oligarchs allegedly use all the time, together with senior British politicians and "Mozarts of Money" to increase their wealth to the cost of everyone else?

Just asking!

777 Partners People

My gut feeling is that the negative “noise” about them might be coming from groups who are worried that

1. They may be very good at what they do.

2. They may have access to a significant source of investment capital.

My first impression is they look far more competent than the people who have been running the club (into the ground) for the last 7 or 8 years.

I do agree with Michael's opinion that doom and gloom are overplayed. Everton still goes on playing football trying to stay in the Premier League. Such are the complexities of the finances and access to information that trying to give a photo in time opinion is likely to be off the mark and exaggerate the outcomes

Maybe the borrowing rates were much better when he started building the stadium? But when someone looks a gift horse in the mouth, and then turns his back on it, then maybe it was because the intention has always been to split the stadium away from the club, and get the club to pay rent, to play at our new ground?

More speculation, I know, I wish they’d hurry up selling the club and then just fuck off.

But I think Moshiri has always been wary of scrunity of his Russian connections as a priority right from the start. It may even be a requirement by them.

And I was scratching around (nearly said Reaching around… eek!) their horrible red website to find this so-called 6-page Special Report on the Everton takeover. All I could find is Joe Thomas doing what passes for journalism by recycling bits and bobs of everything he (and we!) have already read.

Paul @24, I probably don't meet the requisite credentials but the history of investment through purchase of Everton shares has been one that almost consistently shows a fairly substantial return on investment – especially if you hold on to them for a significant length of time.

Add to that the potential provided by the new stadium, especially in American eyes, where they see vast untapped potential for 'monetizing' the home and visiting fanbase by providing a vast array of money-making ventures on the stadium concourse.

I think that's what they are looking toward, and getting over the current financial humps should see them achieve that – as long as we stay in the Premier League.

At this stage, it sounds very much like the stadium isn't included in the sale of the club. I assume we'll be renting it as West Ham and Man City do. Surely the annual interest payments on a £750M stadium will be more than the rent we'd have to pay (I'm surmising), or the rent will be extortionate. Or 777 purchase the new stadium against EFC (sounds unlikely).

I can't help but think that completion of the sale of the club will be the end of matters. Throw into the mix that the reported Treasury sanctions investigation are ongoing, the future direction of the club still seems to have no obvious path.

So I can imagine them trying to figure out the terms of all the club's commercial agreements and what might be lurking around the corner.

No doubt it will take some time as they pour over the details (small writing on the backs of envelopes included).

And then decide whether to close the deal or walk away swiftly.

To go through all that in detail will take months not weeks. Never mind DD on BMD and the funding still needed for that and the FFP hearing in October.

A huge amount to sift through so I’d imagine any final offer will be subject to many things happening or not happening. I can imagine the offer’s probably also subject to avoiding relegation so there’s the possible scenario everything’s agreed by Xmas but it won’t formally happen until June.

This saga’s got a long way to run. Best to avoid and focus on the pitch instead.

Yes, that's another nugget for the doom-laden scaremongers doing the rounds. But based on current facts it seems a long way off the mark:

1) Everton hold the leasehold for Bramley-Moore Dock.

2) Everton have paid for all the construction of the new Everton Stadium, ie, all the money has come through the club and has been paid in the name of the club.

3) Although subsidiary companies exist for the development and 'holding' of the new stadium, they are all 100% wholly owned subsidiaries of Everton Football Club.

That means currently all the asset value of the stadium is ultimately held by the club. Yes, there's a lot of loans and charges but the ownership of the new Everton Stadium is 100% with the club.

For Moshiri or 777 Partners or any other third party to own the stadium and rent it back to Everton, there would surely have to be a very substantial fiscal transaction that saw a lot of money coming into the club in exchange for the current (and future?) asset value of the new stadium. Perhaps I'm being naive but I don't think they can just hive it off without the club getting a massive payoff.

Now Moshiri has had a lot of loans converted to equity in the club. I don't know if he still has further loans outstanding but they are probably now a lot smaller than the current value of the stadium, and he doesn't seem to have any other money. Perhaps there could be a deal where the club issues shares in the stadium and gives a certain number to Moshiri in exchange for his outstanding loans?

Perhaps it makes sense for 777 Partners to just buy the stadium and charge Everton rent? But that is not what has been mooted in public. 777 Partners are purchasing 94.1% of the outstanding shares in Everton Football Club, which includes ownership of the stadium.

ps: Sorry, I didn't spot this: the reported Treasury sanctions investigations are ongoing I'm not sure this is real, is it?

Whereas this may not be the same for our fan demographic, the new stadium must be a whole lot better than the horrible 1960s experience at Goodison Park, with some American input.

I don't know if they did this in the Tottenham Hotspur Stadium? But the new Everton Stadium is "Made in America" – surely it must follow a similar model?

I've only been to one American stadium – even though 20 years ago – the facilities were another world.

The Genoa journalist has also provided a balanced article, regarding 777 perceived success there.

'They kept their promise' – why Genoa have been so impressed with 777 Partners takeover

I was very disappointed tbh. I was expecting steak and fish restaurants but, apart from the clever pour from the bottom pints, it was nothing special.

And you just know Billy Big Bollocks would probably look askance at all these franchise outlets on Dan's Plans and strike them out in the style of Sir Phillip nixing the second tier of the Park End Stand.

"We don't need none of that rubbish here. There's no call for it."

Regarding the Treasury sanctions investigation, I'm only going on what's been reported, including on ToffeeWeb. I, for one, don't think that the media have an agenda against us even if it sometimes feels that way. Looking at it rationally, I'd say it was very plausible that the government would be looking closely at Moshiri given his close links to his sanctioned 'boss'. And if not, then why not?

But that's the potential value of the finished stadium by itself! Why would Moshiri walk away from that with at best 50¢ on the dollar? I still don't get it.

Okay, he's really strapped for cash. Maybe this is the only game in town as nobody would give him the cash needed to keep things afloat until the stadium is finished. Maybe 777 Partners see it as a huge leverage opportunity, and getting control of the entire club (okay, 94.1%) is a huge win for them, if they can manage the cash-flow crisis as well as the other shit coming down the pipeline.

Talking of which, I had to search out that Treasury sanctions story – you're right: we carried it back in May: Report claims Treasury are 'reviewing' Moshiri's finances

It's another Simon Godley Guardian super exposé throwing Everton in the shiiter. In the subsequent 4 months... nothing. No follow-up. No sequel. No charges. No report of investigation or action taken on the OFSI website. Nothing.

So did Simon Godley just make it all up? Or did he call them up one day and say "If a major Premier League Football Club was perceived to be in receipt of monies from a sanctioned Russian Oligarch, you would investigate that, wouldn't you?"

Bingo! New story!

I don't think it would be that difficult to seperate the stadium and the club. While Moshiri has put money into both, I believe he still has a c £300m loan for the stadium. Then you have £200m from Rights and Media and a further £100m from MSP.

It's possible some of this money has had to be used to plug the club losses but I suspect not much, if any; most is related to the stadium. Hence it appears a further £150m is needed (give or take a bit) to fund its completion at the quoted cost of £750m. One could either service these loans or convert to equity in a standalone stadium entity. Probably unlikely in the case of R&MF.

I'm not suggesting this is what will happen, or even that it is a good idea, but I don't think it's that hard to do or that unlikely.

What seems clear to me is that the new owners will have to leverage that stadium for all its worth. If you just applied an interest rate of 10% to the loan amount – not unreasonable – that would need £75m of servicing alone. There is no way EFC would be able to meet that.

I think we currently get gate receipts of around £16m. Hence the stadium is likely to need the majority of its funding/rental coming from outside the football club. I don't know how realistic that is. Whether the club itself takes the risk as the owner, or a seperate entity does so and charges the club a usage cost, isn't really the issue.

Personally I cannot see how this stadium makes commercial sense, especially in the current environment. It's a lot of cost for not a lot of revenue increase as far as I can see. But maybe my risk aversion is why I'm not as rich as Josh Wander.

Maybe he thinks if he keeps it as one entity, the overall growth of interest in football, especially the EFL and especially in the US, will see his equity value soar. Or maybe he is busy persuading Moshiri that he might have to kiss goodbye to some of his loan funding to extricate himself.

777 Partners may just be hanging around until the stadium is complete and hope a rich Saudi prince needs a new train set.

That is very plausible, especially the part about Moshiri running out of money (or at least willingness to provide it at this point) but if there really was a rich Sheikh out there, surely now is the time to buy, if it is truly a distressed purchase and Moshiri willing to get anything he can out. Much cheaper, especially for cash, and no need to let someone else have a margin.

Then of course there is the theory that 777 Partners are themselves merely the front people for such a buyer. That would have more legs if it wasn't for the fact 777 Partners have already bought other clubs, so are already active in the sector. But it appears Everton's transaction dwarves the other deals, probably more than all of them put together.

The Guardian, Usmanov and Everton were brought up in connection with one another during a Parliamentary debate on the Economic Crime and Corporate Transparency Bill earlier this year - link

Then 4-5 months later, it's reported that Moshiri is being supposedly being investigated.

The timings seem awfully coincidental.

I also wouldn't have thought that any government department would comment on this anyway so we'd be unlikely to hear anything.

Americans love to wear baseball caps; don't read anything into it.

My only issue with baseball caps, is when adults wear them back-to-front. It drives me mad.

Penfold Moshri was doing okay until Ukraine and then no more cheap steel.

Sorry, I can't add anymore as my laptop hates TW and I have a 2-second delay from typing to appearing on the screen.
Any other site, no problem. UTFT

It's always possible that 777 Partners might be aware of some interest from a nation state. 777 Partners do all the 'hard' work of putting the various clubs within their portfolio in a stable financial position and then sell all of their portfolio to a nation state, at some time in the future.

It's probably an unlikely scenario, but it's not impossible. More likely, if 777 Partners pass all of the various hurdles, they will flip Everton once the stadium is completed.

The Guardian is indeed back with Simon Goodley drilling down into Usmanov being the source of Moshiri's funds!

I've created a new thread for the Guardian story, and shifted a number of posts over there from this thread. Sorry for the disruption.

I also think his “very casual” visit to messrs Thelwell and Dyche was, what we call here in the land of Oz, to suss them out.

I hope this deal goes through. I think they are in it for the long run.

Yes, certainly possible, whether formally or more likely, informally.

That said, if it were the case, I think a buyer should move fast. The situation is incredibly volatile right now and can't be easy for staff and players. Anything could happen in the next half hour.

(I think that is a line from Thunderbirds and we could do with Brains right now, if you know the reference.)

Guys in suits and caps: Trump, Boehly, Glazers etc.

That style just smacks of "businessman wears a cap to show he's a man of the people".

You think these guys don't have stylists and tell them what to wear to appeal to the common man?

Can't believe I had to explain it to you really, but hey there's always everyone's morality to consider when discussing capitalist movements, right? 😵

https://theesk.org/2023/10/01/777-partners-moshiris-final-misjudgement/

777 partners, in my opinion, are not appropriate buyers of Everton Football Club, from a moral, ethical, financial, managerial and immediate needs based perspective. I understand entirely the view (almost certainly, fact) that without an immediate or near immediate buyer the existential crisis Moshiri spoke of will occur. We, a 145 year old institution, will go out of business. However, that doesn’t mean that 777 Partners are the solution to our problems, the reverse is true in my opinion.

All stakeholders, supporters, investors, local business people with the means, politicians, even the footballing authorities must see what is ahead of us and act accordingly. A solution different to 777 Partners has to be found – even at this very late hour

Absolutely zero substance after he published his questions then left a tantalizing tweet for 48 hours about a “spirited discussion.” It was pretty obvious they wouldn’t answer his questions as they’ve already said they won’t discuss anything while talks are ongoing. But he hyped it up like some scoop only to admit basically nothing was discussed of interest.