The investigative journalists at Josimar report on a document from August of last year that may shed some light on where 777 Partners, the investment firm awaiting the green light for their purchase of Everton, are getting their funding.
The document in question is an “Investment Overview” prepared by A-CAP, a risk solution and service provider based in New York that operates a network of insurance companies.
A-CAP is run by chairman and CEO Kenneth King, who has some direct ties with 777 Partners and whose firm is said by Josimar to be “propping up” the Florida-based firm. The 44-page document is said to outline the specific details of the deal to buy Everton, including confirmation that the ultimate source of the first £40m loan made by 777 to the club was A-CAP, with the Everton paying an interest rate of 12.75%.
The document explains that A-CAP’s support of the Everton acquisition will materially increase the overall value of the 777 Football Group’s multi-club portfolio, and allow it to raise capital and sell equity, creating liquidity and highlighting the extent to which 777 Partners need the Blues more than that club needs them.
According to this latest Josimar piece, “A-CAP estimate that owning Everton would justify a higher overall enterprise value for all 777’s clubs, generating at least 3.2 times more revenue for the group. This, it is hoped, would attract new investors and ‘increase the execution certainty’ of an attempt to raise capital on their behalf by broker Tifosy, which has so far proved unsuccessful.”
Josimar are convinced that 777 Partners need to complete the Everton takeover so they can leverage the huge value that it is building up in the construction of the new Everton Stadium at Bramley-Moore Dock – a valuable asset against which more loans could secured.
The club would also benefit in that substantial amounts of current debt could be converted to equity in the club. But all this hinges on the Premier League giving approval to the takeover of Everton by 777 Partners.