Everton search for new ownership after 777 deal collapses

Everton’s agreement with 777 Partners have come to an end after the investment firm missed the deadline

(Getty Images)

777 Partners’ bid to take over Everton has collapsed, leaving owner Farhad Moshiri free to discuss selling the Merseyside club to other potential bidders.

The crisis-hit American investment firm missed a deadline of the end of May to complete a deal to buy a 94.1 percent share in Everton and their agreement with Moshiri is now over.

Everton insisted they would continue to operate as normal for the meantime, but said they would “assess all options” in their search for alternative buyers. They had already begun to explore alternative scenarios as it became increasingly apparent 777 lacked the money required.

Everton said in a statement: “The agreement between 777 Partners and Blue Heaven Holdings Limited for the sale and purchase of the majority shareholding in the club expired today. The club’s board of directors recognises the considerable level of financial support 777 Partners has provided the club over recent months and would like to take this opportunity to thank them for this. The club will continue to operate as usual, while it works with Blue Heaven Holdings to assess all options for the club’s future ownership.”

Crystal Palace co-owner John Textor has revealed that he is interested in purchasing Everton, though he would have to sell his 45 percent stake in the Eagles to be allowed to take over another Premier League club. Moshiri has also received expressions of interest from several other parties.

777 had a deadline last night to repay a £158m loan that Moshiri had taken out with MSP Sports Capital and two businessmen, Andy Bell and George Downing, which the Premier League had made a prerequisite if they were to ratify the takeover. The Miami-based firm missed that deadline and, while they had been granted an extension after failing to pay by an earlier deadline in April, the deal to sell the club is now off.

777’s position has deteriorated in the last few weeks. They were sued in a civil court in New York by Leadenhall Capital, an asset-management firm, who alleged they were guilty of fraud amounting to hundreds of millions of dollars. Josh Wander and Steve Pasko, the co-founders of 777, were removed from the board after B Riley Advisory Services were appointed to address their “operational challenges” while 777 face lawsuits amid accusations of unpaid debts.

Both Everton’s Fan Advisory Board and their Shareholders’ Association had urged Moshiri to abandon his attempts to sell the club to 777 in recent weeks.

However, 777 loaned Everton around £200m in the last year to cover the running costs of the club and the construction of their new stadium at Bramley-Moore Dock.

Besides the MSP loan, Everton also owe around £220m to Rights and Media Funding while Moshiri has loaned the club £450m, though that is unsecured debt.

Everton, who had eight points deducted for failing the Premier League’s Profitability and Sustainability Rules for successive seasons, may also need to sell players this summer to bring in funds, though they are adamant there will be no fire sale and would only listen to offers for Jarrad Branthwaite if they are at least £70m.

Moshiri had agreed to sell Everton to 777 in September when he initially said the takeover could be completed in December. However, there were growing doubts if 777 possessed the funds, while the Premier League imposed a number of conditions – also including depositing £60m in an escrow account – if they were to grant their approval.

777 had also bought stakes or majority shareholdings in a number of other clubs, including Genoa, Standard Liege, Hertha Berlin and Vasco da Gama, but many had encountered problems.