The American investment firm set to buy out Farhad Moshiri’s majority stake in Everton are reportedly under review for late payments made to the British Basketball League, the outcome of which could colour the Premier League’s assessment of their suitabiilty to run the Blues.
According to The Telegraph, the British Basketball Federation has launched an investigation into 777 Partners following complaints by seven of the BBL’s 10 clubs.
777, who signed a deal with Moshiri this past week to purchase Everton from the British-Iranian businessman, own current BBL champions London Lions as well as 45% of the BBL itself following a £7m investment in the League two years ago, but a £900,000 payment as part of that commitment was made “a few months late”, triggering a BBF probe.
It also prompted the seven disgruntled basketball clubs to demand that the BBL cut ties with 777 Partners but the League’s chairman, Sir Rodney Walker, insists that the Florida-based outfit have now fully caught up with their payments and have committed to paying the remaining £800,000 due on that £7m investment by the end of this month.
Walker blamed “forces at work in basketball at the present time trying to create trouble” for the investigation and appeared to be satisfied with 777 at this time.
“Of course, [the allegations] are of interest to me and I have discussed them fully with 777,” he said. “They have an explanation. Whether or not their explanation answers all the questions is something I can’t comment on because I don’t know all the details.
“All I can say is, notwithstanding the fact that, for a few months, they were not paying all the money over to me, they have now paid all the money and they have now made an offer in writing to go beyond that. So, they are, as far as I’m concerned, delivering on their promises.”
777 Partners, meanwhile, recently issued a statement of their own via a spokesman regarding their investment in the BBL, restating their commitment to basketball in Britain:
“777 Partners is funding the BBL ahead of schedule and beyond our original commitment, including support to two additional clubs. As a stakeholder investing into British basketball, our commitment extends well beyond the BBL, and we will continue to represent a benchmark of investment previously unseen in the sport.”
It’s not the first report of an investigation by the BBF into 777 or accusation of impropriety that it or its sister companies have faced, with Norwegian publication Josimar publishing concerning allegations of fraud, predatory lending and failing to pay bills totalling hundreds of thousands of dollars in the United States.
777 offered a denial last month that a BBF investigation into their ownership of London Lions was anything other than routine as part of what a BBL statement said was “a measure in place to safeguard the financial sustainability of the league and its clubs, and ensure that the league and clubs are in a great position to meet their aspirations of growth.”
They also vigorously defended both themselves against the charges made against them by Josimar and those brought against co-founder and chief Josh Wander for drug offences as “inaccurate and defamatory”.
“777 Partners can categorically confirm that there is no investigation into its ownership of the London Lions, and that these rumors are completely unfounded,” their statement read. “We have a brilliant working relationship with the British Basketball League and both parties share the same objective in terms of bringing the sport to new heights in the UK. Our commitment to this mission is unwavering, having invested more into the sport than anyone else in its history, amounting to tens of millions of pounds.”
In line with their recently-imposed directors and owners test, the Premier League will be scrutinising 777 Partners’ relationship with the British Basketball League and their failure to fulfill their financial obligations in a timely manner, particularly as they relate the firm’s ability to afford to buy out Moshiri.