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Everton future in peril if 777 takeover not completed this month
Working capital and new stadium financing for Bramley Moore Dock is only assured until March 31
Tom Morgan, SPORTS NEWS CORRESPONDENT4 March 2024 • 5:39pm
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Everton’s financial future will be plunged into major doubt by the end of the month if
777 Capital’s proposed takeover remains unresolved.
Pressure is mounting for the Premier League to finally make a decision on the deal as working capital and new stadium financing is assured only to March 31.
The coming weeks could be among the most consequential in the Merseyside club’s history, with executives also fighting a second alleged spending breach.
A decision on the outcome of
the league’s toughened owners’ and directors’ test can be ruled out for at least another week, sources tell Telegraph Sport. More meetings are anticipated between the top tier and the Miami-based investment firm in the coming days to clarify outstanding questions face to face.
Even if the Premier League board is then satisfied it has received all information, an independent oversight panel of KCs will be called in to review conclusions under the new rules.
The precedent set by
Sir Jim Ratcliffe’s 25 per cent purchase of Manchester United have led insiders to conclude that further process alone will take another seven days.
Although Everton’s 10-point deduction was reduced to six last week, the club’s form has dipped worryingly, with defeat against West Ham on the weekend.
An appeal panel reduced Everton’s punishment due to “legal errors” but an accompanying ruling detailed how the club had already committed “over £800 million” to its new Bramley-Moore Dock development.
Telegraph Sport has reported previously how 777 appears unwilling to provide any further loan funding while the takeover saga drags on. The company, one of a growing number of multi-club owner models, agreed to purchase owner Farhad Moshiri’s 94 per cent stake in September. It has since provided Everton with a further £30 million in funding, taking the total loan from the American investment firm to £180 million.
In recent weeks, 777 has moved to reassure its own staff over its finances after the recent departure of Damien Alfalla as chief financial officer.
Co-founders Josh Wander and Steve Pasko wrote in an internal memo: “We are pleased to announce that Brett Kaufman will be stepping into the role of CFO for 777 Partners. We are confident that this change will fortify our future growth and are excited to welcome Brett into the 777 family. We appreciate your continued support and enthusiasm during this transition.”
Everton were hit by claims that the takeover could be put in danger by allegations regarding one of 777s subsidiaries, 777Re, which is a Bermuda-based reinsurer.
But sources close to 777 insisted the reinsurer has been placed under administrative control as part of a reorganisation of the industry by Bermudan authorities, rather than being placed into administration, and that there are no issues for their funding of the Everton deal as a result.
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