777 Partners increase Everton funding by £40m

I can't see anything other than relegation and administration under Moshiri.

Everton and Nottingham Forest will find out whether they will face any further action on Monday, 15th January, around their new Premier League charges. [@Telegraph]

Why only those two clubs are mentioned in various reports is a real concern, but we'll have to wait another week to see how things are. I would imagine that any decision to approve or disapprove 777 Partners will be after that day?

Has there been any news whatsoever lately?

We're in ownership purgatory and teetering on bankruptcy.

We need clarification on the takeover and the points deduction appeal in January. It's getting comical and ridiculous this dangling limbo on both fronts! Frustrating as fuck!

Or am I simply being naive?

I get the impression that they want us out of the league by one way or the other.

Just a matter of announcing it.

I think it's redeemable with shares, pending takeover finalisation. But MSP Sports was the same and it turned into just a loan. I don't think the rate of interest has been revealed. There probably is a legal requirement that they have to reveal loans.

There is an agreement that 777 Partners are buying Moshiri out, which MSP Sport did not have, but there are probably conditions or valuations to be considered, subject to the Premier League's sanctions, which have not been finalised yet by their commissions.

Also, there is Everton's 2022-23 figures and how they comply with the Profit and Sustainability Rules. Paul the Esk understands they do comply, but does not give the source. Which understandably Evertonians are sceptical of, given the club's history on previous leaks.

What's my opinion? Hopefully things are heading in the right direction.

I'm pretty sure interest payments are a very significant ongoing issue for Everton, adding to the already daunting month-to-month running costs – at least based on what was made known about the other loans from Rights & Media Funding and MSP Capital. I recall seeing posts suggesting the club was paying astronomical rates of interest on these – as high as 20%, although I may be wrong.

High interest charged on loans may well be one of the ways that 777 Partners rather conveniently make substantial and immediate returns on their various captive 'investments'. But as you suggest, the other consideration is that such loans may be converted to equity (ie, shares in Everton FC) if the long-drawn-out takeover finally goes through.

As to how such numbers filter through onto the Profit & Loss statement, and thus impact the PSR calculation... what a friggin' minefield!

Where are you getting that from?

I don't think 777 Partners are anyone's dream owners but increasingly they look like the only show in town and the only pathway that doesn't lead to likely administration.

Presumably their first job will be to restructure debts in a way that does not leave us hamstrung (from that I gather this is what they have done to Genoa).

What a mess.

Everton is a hot potato for the football authorities and the government. When I say the football authorities, I mean both the Premier League and the Football League.

There were celebrations in the Football Leagues offices in Preston when Everton avoided regelation, according to someone who worked there I know, and the fact that the sanctions are similar to EFL sanctions is no coincidence. The government has increased interest as well, with a community based club in a major population centre, with a multi million pound development attached.

Who ever is able to come up with the money will be taken by the hand, though subject to conditions to try to get a secure outcome.

I believe you were involved in The Beautiful Game. I suggest you start on a script called The People's Club. It would take on proportions beyond Bates vs The Post Office, with an up-to date social media angle and an international dimension.

If the Premier League give it the thumbs down, it would make them look even more of a dictatorship than they currently are, difficult though that is — given that the FCA is an experienced independent body that look into these matters all the time.

The more I read into the 777 Partners acquisition of Everton FC, the more confused I get…

If you recall, MSP Sports Capital offered Moshiri in April 2023 approximately £125M (nearer £132M) for a 25% share in the company, plus they offered additional funding (circa £100M) in capital directly for the stadium build.

All this for the price of removing Uncle Bill Cobley from the Chair position, and being given two seats on the board.

Whilst allowing Moshiri a route to further remove himself from the club, via additional share purchases as time went on, and with the promise of another tranche of shares being created and sold to the tune of approximately £100M to raise additional funds and lessen Moshiri's percentage of ownership...

With me so far… well, if the numbers stayed consistent. Would that not have meant that MSP would have eventually paid approximately £500M over a longer period than 777 Partners are offering, giving Moshiri more 'income' over the time he remained as a shareholder, plus an extra 'guaranteed' £100M for the stadium (thereby allowing monies to be allocated of improving the squad) and with a further £100M in additional shares to be generated also...?

Giving a purchase price of around $600M (including stadium costs) and a further injection of £100M via a new share issue.

And yet, R&MF, basically the main debtor to Everton, actually refused the deal, saying that the selling price would be "too low".

Now, since April 2023 to September 2023, we have Moshiri subsequently agreeing to basically selling up, lock, stock, and barrel, for an agreed £500M (which was originally mooted at £550M) with that price soon to fall due to the repayment of the now £140M+ in funds (High interest loans, reported as being serviced at yes 20%!!)

These funds were made available to underwrite the 'operating and construction' costs required for the club to survive, and less any reduction as agreed, and reported in the press, regards the effects of the Independent Commission's findings in regards to PSR.

And yet... not a peep do R&MF make!?

Something is rotten in the State of Denmark if you ask me...?

Especially when you consider that;

i) MSP Sports Capital had raised capital via an investment vehicle, and although the funds looked 'clean' at a cursory look, when you scratch the surface a little, the monies could be coming from anywhere, but the money was there and due to be listed on the NYSE (if I recall correctly).

ii) 777 Partners have been shown to have liquid assets, and the required monies 'available' for the takeover. Yet, it has been shown that, at least on an operational level, the means of accessing these funds will soon be made more difficult, if the main cash-generator would continue to be underwritten, and consequently invested in, rather than not, and thus divested of assets... Which means that 777 Partners would become even more reliant on another less tangible (though thus far as reliable) 'sponsor' or backer.

To me, this makes no sense whatsoever?

Why would R&MF ultimately allow the sale of the club to go through for less money than the offer that they said was "too low"; and why agree to sell to an investor with less than transparent business accountability?

Dare I suggest, as the cynic, or rather sceptic might, that there may well be ulterior motives for Moshiri and R&MF to sell to a more financial 'fluid' and 'opaque' organisation, rather than to one with a more structured and transparent way to conduct business?

Especially when considered that MSP have added value, and generated success (at some level) at the organisations they have invested in, while on the other hand with 777 Partners, the opposite is patently obvious with the clubs that they have currently invested in.

Hence why the British Basketball League have demanded additional funds to continue as an organisation, and why the 777-owned London Basketball team is awaiting funds to continue, and this is why Vasco da Gama in Brasil have a transfer embargo, and also as of last month so have Standard Liege.

Plus it is why Genoa are awaiting the decision of the Italian Tax Authorities to agree to existing loans (and accrued tax debt) to be restructured so as to allow the refinancing of Genoa, or they will face bankruptcy and dissolution, unless further monies (ie, another investor or owner) is found.

The situation just stinks of some sort of a 'money magic, magic money' (a lot like a Rehypothecation scheme) to me. Which, unfortunately, may lead to larger problems down the road for the club.

As much as the heralded FCA announcement and subsequent permission for the takeover to progress greatly relieved me initially; it has since been self-announced (by the FCA) that the 'agreement' to allow the takeover was not so much of a hurdle to pass, and was more of a box-ticking exercise. That now does nothing to really placate these nagging worries that have started clawing at me again!

Is this takeover (which I'm now sure will take place due to the real politiks of the World of High Finance) going to genuinely benefit us; or is it going to be a case of either better the Devil you know, or from out of the frying pan, into the fire...?

I guess only time will tell.

Lastly, I have read and heard absolutely nothing about any other suitor for EFC? So, is this again genuinely a situation of the 'last chance saloon'?

Either that or Moshiri is going to have to take one big bath with his and Uncle Ali's money!!

On first reading of your missive, nothing jumped out to me as being anything other than a reasonable summary of many aspects of the proposed takeover and the saga that has developed around it.

Except perhaps the FCA 'statement' — I seem to have missed that despite checking their website a number of times.

It may not be fair to stack up the possible MSP scenario you outline against the probable 777 scenario that appears to be in motion. The reason I say that is that I think the MSP deal was very much of the moment, back in April.

I reckon at that time a full 777 deal looked a whole lot better to Moshiri than the 25% piecemeal MSP deal, even though your scenario may suggest it could have been better in the fullness of time.

There's no accounting for Moshiri's decision-making, though. It's not been good (understatement!), and he may have made a really really bad decision by going with 777 Partners. That's what Paul Quinn's been telling us from Day 1.

As you say, only time will tell. But few of us have the patience to just wait and see what transpires.

Some say there are other suitors out there, one who is flabbergasted they aren't in the driving seat. But strangely only one bloke has been beating that particular drum and he's now taken a time-out.

What makes no rational or logical sense is that it has taken almost 4 months and the Premier League still can't decide … or they can (per #7 above) yet can't bring themselves to tell us that decision.

I'll read it again tomorrow and see if there's anything more I can add. Sleep well!

The twilight zone – Josimar, 9 January 2024

The man with Everton knowledge? Buster Wyness?

Funnily enough, I am working on an Everton-related project at the moment. Hope it comes to fruition.

I remember 'Everton' emblazoned on the red brick wall in Blood Brothers, seemed very appropriate.

I see that Ancelotti followed my maxim: Once you come across a dickhead, you can be sure that there is a smiling big one above them. You are going to get nowhere trying to bypass them.

The interest on the loans is what is/will cripple us. Even with the increase in turnover the new stadium will afford us, I don't see how we pay down the debt that is 4 or 5 times the annual turnover?

I'm sure it's all very cleverly accounted for in a way I won't entirely understand, but my concerns are not going away, even with new ownership in the offing.

New stadium and increased revenue will help.

It's been painful, but we've gone a way in reducing it and, if you take Paul the Esk's recent comments, we seem to have addressed P&S for now.

Let's just be more sensible than we were in the past few seasons.

Davide Ancelotti's comments make for telling consideration.

It also paints a bleak picture of 777 and their very dubious ways of running football clubs:

Link

Was he made promises that the club didn't keep? He's no fool. He's one of the most successful managers in European football.

We blew it. Not him.

Everyone points to 10th place. He was one game away from European football.

Koeman would have finished eighth. Allardyce claimed a victory for a match he wasn't even in charge for.

Don't start me on Allardyce. I've supported every Everton manager throughout my life, but I couldn't stomach him being our manager.

At a time when we are accusing the Premier League at every match we go to, he got found out on camera for being corrupt and fraudulent.

It really is all up in the air at best and we just drift on, rudderless. I wonder if something/someone actually will spring out of left field late on to surprise everyone. In fact I hope so. Not comfortable with 777.

Never seen that site before btw.

p.s. a couple more related ones to go at on the features page there. Not ideal.

I don't often disagree with you but I have to say I cant agree that his time was a financial disaster, as you rightly point out he didnt sign Doucoure or Godfrey. He signed Allan for about £27m and we got James on a free admittedly he was reported to be on £200,000 a week. But compare what Ancelotti spent to all the other managers and apart from Benitez ( cant bear to write his name) the rest spent a lot more than Ancelotti. Koeman spent £45m on Sigurdsson alone never mind the other bums he bought. Even Allardyce as the shortest time as an Everton manager spent £50m on Tosun and Walcott another 2 who were a waste of space.

Regarding Ancelotti putting his foot down over Kenwrights involvement, he was new to the club and while he probably looked at Brands and Kenwright and thought these 2 muppets are clueless, I don't think even for someone with Ancelottis track record he would have been wary of telling the owner these 2 need binning.

I also disagree when you say he didnt do it at Everton until the last 4 or 5 games we were in a European place, but by then I think Ancelotti had had enough of Kenwright and Brands interfering and had already decided to look for pastures new.

We have never and probably will never certainly in my lifetime have a manager of this class and quality. He leaves Everton and goes to Real then wins the league and the Champions league, to win that trophy more than anyone else.

Dave what I will agree with was at times under Ancelotti it was a very defensive set up, but maybe given the squad he had inherited he thought that was the best way of getting results. I am convinced if he had been given the money that Koeman and Silva spent he would have had us chasing at least a Champions league spot.

https://www.transfermarkt.com/ronald-koeman/spielertransfers/trainer/439/station_id/136219/plus/1

James Rodriguez, not starting the argument over how good he was or wasn’t but his wages were ridiculous especially when he ruled when he was fit or unfit and Carlo just shrugged his shoulders and raised his highbrows and let the Columbian do as wanted.

Other managers did worse than him in the transfer market: Two wrongs don’t make a right.

He knew Brands was DOF when he took the job, if he didn’t know the late chairman knew next to nothing about football it wouldn’t have taken him more than the first uttering out of his mouth to know exactly that.

Anyway Brian, Ancelotti has been and gone, some will miss him some won’t, I’ll respect his career in football elsewhere but he came, he saw and he ‘ did one’ is the way I saw him.

So but for a mythical sugar daddy, it would have inevitably ended in transfer embargoes for all of these clubs.

The best of luck with that project. If it is as good and as funny as the one I think you were involved in many years ago, it will be well worth watching.

It was the one about the football-mad football fan, played by Michael Palin.

Lessors chase 777 Partners for $28M alleging non-payment for Flair 737s

I have a gut instinct 2024 might be a good year. The points penalty reduced. A decent finishing position in the league. A decent run in the FA Cup. No PSR threat at the end of this financial year. The ownership issue satisfactorily sorted. Decent signings in the summer. A decent start to next season. The new stadium at Bramley-Moore Dock finished and tested with an event for all of us with away game credits.

Too positive?

I think many fans after Kenwright & Moshiri have an “anyone would be better” mentality. But people in the Weimar Republic, Saddam's Iraq, Gaddafi's Libya and the late Peter Johnson's Everton had the same naive optimism and look what happened.

I have massive concerns over these shysters. I don't buy this argument “if they don't takeover, we will go bust” because I'm more concerned that, if they do takeover, we will go bust and face criminal sanctions.

I'm just praying Tony Abraham's and his anonymous source have some validity in claiming some benevolent American billionaire has been staked out in the Titanic Hotel with more money than sense just itching to write a check since Kenwright was still kicking.

But I fear Tony's source is about as reliable as the gypsy camped out in the bus stop selling magic jumping beans.

As we hear of the passing of Peter Johnson, many of us (myself included) were initially optimistic of Kenwright's takeover until it became apparent he was ill-equipped to run and fund the club but wouldn't let go until he eventually found an investor.

The silent Iranian. They blew the money and look where we are now.

But we will get out of it. Right now, more than ever, I'm focussed on the team. Ultimately that is what will dig us out of it in the short-term. No investor is coming in with a magic wand to turn things around instantly.

But for the longer-term, something needs to happen in terms of ownership or majority shareholding as it seems clear the current regime is either not interested or can't sustain it.

Personally, I still can't see how Moshiri won't remain until the stadium is opened. That is his jewel in the crown. I guess we'll see but in my head and that scenario, that would probably see new investors take an initial early stake before a full takeover once the stadium opens and then the keys are handed over.

777 Partners are continuing to put millions into Everton. They surely wouldn't be doing that without reason?

Points reduction suspended for 2 years. 😉

FAB-hosted Supporters Meeting before the match on Sunday (10.30am) with Andy Burnham ...and Steve Rotheram as guest speakers (possibly more TBC) – the venue is a school just a short walk from Goodison.

Multiple fan groups will be represented and there will be a chance for Q&A and for Blues to have their say.

All welcome but we ask you to register to attend so that we can keep track of numbers.

It's a worry having them own the club.

Unless I am mistaken.

Cheers Rob.

Surely there's a certain irony that the latest one says the Premier League will turn them down because they are not sure about the source of funding – yet they've already pumped in going on for £150M!!!

But this latest one is just rumours and fears, Paul. Nothing definite yet.

NewsNow also reporting that a second major consortium is lining up a bid. Should we run with that instead?

New frontrunners are 666. Roll on Champions League, derby wins and premier league champs!

As per usual, there are no quotes from anybody, so speculative at best?

There's no saviour.

I don't see anything other than a 777 takeover happening.

Good news here, bad news there, and at the end of it all, we'll still have to wait to see if any of it is good for us as supporters of the club.

They wouldn't automatically go to her.

It's finally our turn to have a pact with the devil!!

Appreciate it's down to the will and not automatic. I can imagine passing them on to Jenny would be something Kenwright might have thought about doing to keep it in the 'family', but on reflection more likely to his daughter.

He states that our cases are identical “They've not been relegated as a consequence of their overspending. That's unfair.”

The most basic understanding of the details would show this to be nonsense but it seems he won't let that stand in the way of becoming a media rent-a-gob.

And he says that in some quarters this is seen not as an affirmation of imminent Premier League approval but rather the opposite, an acknowledgement that the signoff is nowhere close.

I would find it really strange for 777 Partners to invest £140 million into Everton if they weren't given some sort of assurance that they will be allowed to buy the club.

Would it affect your assessment if the money has not yet been 'invested'?

My understanding is that the money is in the form of loans, so not strictly 'investment' as such. I think a lot of it becomes investment when Moshiri is able to transfer ownership and the loans are converted to equity. (This may involve EFC issuing more shares.)

But, if the Premier League block 777 Partners from becoming our new owners, then the loans stay as they are, and 777 Partners bank a shitload of interest on these loans until they are paid back.

So a win-win for them – unless it forces us into administration!!!

But yes, we can't see who they are at the moment… and they may not really exist.

That came from Keith Wyness, which makes it more than a "story" in my book.

It's a test of the accuracy of Paul the Esk's sources, as he is unequivocal that we are compliant with the P&S rules this time round. Here's hoping they are right.

I just do not see the failure to agree the 777 deal as a cause of administration.

Even if Moshiri has given up, why then throw away more?