16/01/2024 5comments  |  Jump to last

777 Partners, the investment firm awaiting regulatory approval of their prospective takeover of Everton FC, are in yet more legal jeopardy with the news that a California-based institution have filed a $30m lawsuit against them.

The Athletic report that, according to a court summons filed in New York last week, Change Lending LLC, the owner of non-profit The Change Company, the largest community development financial institution (CDFI) started legal proceedings against 777 to recover $17m it invested between September 2022 and February 2023.

The report by Matt Slater suggests that, under the terms of the original deal, "if 777 failed to provide requested financial information to Change, or any “reputational risk” emerged, Change could make 777 buy back the preferred equity at the same price, plus any unpaid dividends."

In what has become a familiar narrative around 777 Partners, the court summons, Change grew frustrated by "delays and excuses" from 777's leadership, including co-founder Josh Wander, over unfulfilled requests for "financial statements, including an audited balance sheet of 777’s assets" which prompted Change to trigger its repurchase rights last September.

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Change even cited recent media reports around 777’s proposed takeover of Everton and its purchase of  Standard Liege that raised concerns about 777’s “business practices” and the source of the money it is using to make these investments.

Change says it has “determined that the 777 Entities were in unsatisfactory financial condition” and that 777 has “exposed Change to unacceptable reputational risks” and that they are entitled to “compensatory and consequential damages” plus the payment of all of their legal costs.

This comes in the wake of a lawsuit brought against 777 Partners' airline subsidiary Flair by three Irish aircraft leasing companies and a Danish IT enterpreneur who is seeking $1.8m over a separate dispute in Florida.

Having reportedly been cleared by the Financial Conduct Authority, 777 had expected to have heard whether they had passed the Premier League's Owners and Directors Test by the end of December. 

 

Reader Comments (5)

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Paul Hewitt
1 Posted 16/01/2024 at 07:05:39
I can now see the Premier League coming out and denying 777 from taking over, putting us in more trouble.

They must be bloody loving this?

Mike Hayes
2 Posted 16/01/2024 at 09:26:42
To finally put a final nail in the Everton coffin - the corrupt league will let them take over and watch us burn. 🤷
Paul Hewitt
3 Posted 16/01/2024 at 09:36:01
Mike, I really believe the Premier League are deliberately taking their time hoping 777 Partners pull out. With no one else looking to buy us, we would go into administration.

That would mean certain relegation and no longer a problem for the Premier League.

Will Mabon
4 Posted 16/01/2024 at 09:39:13
Damned if they take over, damned if they don't.

Not a good outlook.

Mike Hayes
5 Posted 16/01/2024 at 16:44:46
Paul,

For whatever reason, both the Premier League which we co-founded (?) and Sky hate us with a passion. 🤷 Anything which will sink us then they will let happen. What the fuck did we do to deserve this treatment?

According to a ToffeeWebber, there is another buyer waiting in the wings. They will need very deep pockets to get things straight but we have to have hope.

I sometimes wish their precious Scumbag 6 would go and let the Premier League deal with losing them, but Sky would benefit financially.

For me, football is just a money-making scam business – not a sport anymore. It's lost its integrity due to those two greedy corrupt fuckers. 😡😡😡

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