A Deeper Look Into 777 Partners' Acquisition of Everton FC

by   |   03/10/2023  0 Comments  [Jump to last]

According to recent reports, the proposed purchase of Everton FC by 777 Partners is “well underway” and will likely be concluded around December. However, if the deal doesn't go according to plans, Everton will have to sell some of their key players in January to stay afloat. This includes Amadou Onana, Jordan Pickford, and Dominic Calvert-Lewin. 

The plan to sell Everton to 777 Partners comes after reports that Everton's FC owner, Farhad Moshiri, had stopped injecting more money into the club to alleviate its financial burden. Everton have been going through a difficult financial situation following the loss of sponsorship deals and the construction of Bramley Moore Dock Stadium. 

The club has been relying on loans from Rights and Media Funding, 777 Partners, and MSP Sports, which amounts to more than £350m and £30m per year in interest.

The loans are as follows: 777 Partners £20m, MSP £00m, and £40m from two local businessmen, George Downing and Andy Bell, who facilitated the construction at Bramley Moore Dock. On top of that, the club is yet to clear the loan it received from Rights and Media Funding, which was extended to £200m. And that's besides their past five years' losses amounting to around £430m. 

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Besides, the club still needs more money to facilitate its daily running costs and settle stadium contractors before the end of the year. 

Will 777 Takeover Really Help Solve Everton's Financial Situation? 

Many Everton supporters and punters on sites like Lottoland new sportsbook are invested in knowing the intentions of 777 Partners of owning Everton. In the past, the American-based investment company has received harsh criticism from fans regarding their "multi-club investment model." 

777 Partners has stakes in several football clubs, including Genoa, Sevilla, Vasco da Gama, Hertha Berlin, Red Star FC, and other smaller clubs. Additionally, they have holdings in London Lions, which plays in the British Basketball League, as well as sports rights businesses in South Africa. 

Some clubs have enjoyed stability, while clubs like Genoa have experienced relegation under 777. For instance, after 777 acquired Vasco da Gama, the club returned to Brazil's top-flight football. On the other hand, Hertha Berlin supporters recently protested against 777's ownership of their club following their relegation around two months ago. The company also faced some hostility after acquiring Red Star Paris in May 2022, with Standard Liege facing relegation possibilities. 

Nonetheless, if 777 Partners can transform their invested companies into strong and self-sustainable financial organisations, Everton could undoubtedly benefit from this acquisition. 

777 Partners is said to be planning on how it will maximise commerciality and sponsorship in its current business model in a bid to introduce diversity in men's and women's teams that will deliver results for future generations of Everton members. 

That said, it's important that 777 Partners is given a chance to explain their plans about how they intend to run the Everton and the culture they want to adopt at Goodison Park before judging them harshly. 

What Drove Everton to a Financial Black Hole 

Everton's current financial nightmare can be attributed to the club's poor management, including disorganised recruitment and erratic decisions. The war in Ukraine also led to Alisher Usmanov's income in sponsorship deals being frozen by the EU. Usmanov, who has been sponsoring Everton's training ground, is now seeking repayment of unspecified sums owed by Moshiri

Problems Facing Everton's Acquisition by 777 Partners

777 Partners must be approved by the Financial Conduct Authority and the Premier League Football Association to acquire Moshiri's 94.1% in Everton's shareholding. This is the only viable choice for The Toffees to solve their current financial problem, lest they lose some key players in January. 

The American-based investment group is subject to legal proceedings in the US following allegations of fraudulent activities and unpaid debts. 

Besides, Everton is set to face an independent commission soon after they were accused of breaching Premier League's profits and sustainability rules. The club has since denied these allegations. 

Final Thought 

The 777 Partners acquisition is the only option for solving Everton's financial problem. However, if the company fails to secure Everton's ownership, the club may be forced to sell some of their top players in January to alleviate their financial instability. Besides, they can wait to start generating around £60m worth of revenue from the Bramley Moore Dock stadium after its completion in 2024. 

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