777 Partners / Whatever the hell you like

[Armaghtoffee]

If im the adult in the room, we are in big big trouble.

I’m not entirely sure what’s happening but I’m praying the plan is to sell us to big pockets once the stadium up and running.

 

[ToffeeTim]

They're buying us using Klarna

What could possibly go wrong

Whatever it is they still need to prove that they actually have that in cold hard cash not in 'assets' according to the new rules and they need to show they can actually run the club going forward. They are playing in the PL now and moneywise it's a different ball game to the other clubs in their portfolio. I think they may get a bit of a surprise when they realise just how much cash it takes to run a club in this league regardless of whether it's at the top or bottom of it. There is also part of me that thinks (given their reputation) they might use their other clubs to help generate cash to get the stadium and a few other bits sorted out and then flip us on for a big profit. We will see.

Deferred consideration is not that unusual in business sales

 

[LinekersLegs]

If im the adult in the room, we are in big big trouble.

Perhaps he meant grow outwards so fast

 

[Shevin Keedy]

Everton is many things...but never boring!

Have you watched us play the last few seasons?

 

[Weebarra]

I voted unsure, I'm convinced that 777 will be awful owners, but, I'm not altogether convinced that they will be worse than Moshiri.

I can reason with your views, bit I think we all know, to be careful what you wish for in context of life.

My rational side says no, but what looks like an unholy alliance could have an ironic twist of fate and work out well..

Bur surely the EPL UEFA and FIFA, must be looking the 777 trading model, buying 7 clubs across the world in 18 months or so.

It seems the Mosh has gone , at the first opportunity to sell lock stock and barrell.

But this deal is no where close to being done as it must follow compliance and I wonder, still how they could fund the purchase of EFC and BMD stadium.

I'm cynically suspicious, but I remain to be convinced. I hope if it goes through they don't turf out the manager and his staff and upset the squad in a very tough season.

But there's a long way to go.

UTFTs!

 

[degsy]

I’m not entirely sure what’s happening but I’m praying the plan is to sell us to big pockets once the stadium up and running.

I think that was Moshiri's plan too

 

[Goat]

I found this interesting :

Moshiri has made about £750mn of investments in Everton but is expected to recoup only a fraction of his outlay. Football Benchmark, a consultancy, estimated this year that the indebted club’s enterprise value was around £470m.

Miami firm 777 Partners agrees to buy Everton Football Club

Deal makes fund the latest American investor to buy into English Premier League

www.ft.com

 

[Librarian]

I'm not sure it's a set amount then

We’re basically Dele Alli

 

[Efcjake]

I'm not sure it's a set amount then

As in 50% off if we get relegated

 

[windymiller]

I voted unsure, I'm convinced that 777 will be awful owners, but, I'm not altogether convinced that they will be worse than Moshiri.

Same

 

[Efcjake]

I found this interesting :

Moshiri has made about £750mn of investments in Everton but is expected to recoup only a fraction of his outlay. Football Benchmark, a consultancy, estimated this year that the indebted club’s enterprise value was around £470m.

Miami firm 777 Partners agrees to buy Everton Football Club

Deal makes fund the latest American investor to buy into English Premier League

www.ft.com

I mean we've all done the maths in the DOF threads over the years seeing massive fees laid out with no return as they left on frees and drained the club financially with their massive wages we were stupid enough to give them.

A tiny, tiny fraction of the investments Moshiri made here have turned a profit but the vast amount has been lashed up the wall.

 

[Martin Alvito]

The most worrying part of 777 is how rapidly they are trying to expand the portfolio, they are bound to want to get an NFL team or alike in North America and are we all just a way of raising funds to make that come true. I don't see them staying focused long enough to really build something here as it will be in the bag you go with the rest of them and on to the next acquisition.

I can't figure out how they're expanding the portfolio. As I dig further into these guys, I keep getting strong Enron vibes. They're touting 500% employee growth, but they're operating legacy businesses. All these soccer clubs they're buying up are losing money. That's getting backstopped somehow, but where's the money coming from? The business itself is estimated at having fifty to a hundred million pounds in annual revenue, which isn't enough. The court cases against their subsidiaries are consistent with the reviews of their businesses - terrible. If they're systematically not honoring contract terms and perpetrating fraud, which is the pattern alleged in a huge volume of Better Business Bureau complaints against their various businesses, sooner or later some lawyer will break them over his or her knee in a class action suit.

They claim the asset portfolio is worth ten billion, and it might be, but where did they get the money to grow from a bit player in the secondary annuities market to a holding company with ten billion in assets in just eight years? The company from which they bought their initial business has a market cap of 600 million dollars. The subsidiary they bought out, presumably, was purchased with far less. An unnamed former employee reported on in the Josimar story accuses them of robbing Peter to pay Paul, which is one way to make that kind of growth happen, but it's not sustainable. Sooner or later, the music stops and there's no chair.

If the whole thing is the house of financial cards I think it is, sooner or later it all comes tumbling down. A junk bond wizard can only do so much. Michael Milken is worth billions today, but he did two years in the joint and took Drexel Burnham Lambert down with him. Ironically, he helped drive KinderCare into Chapter 11 bankruptcy with his debt issues, but today he owns it.

 

[Leylo]

I found this interesting :

Moshiri has made about £750mn of investments in Everton but is expected to recoup only a fraction of his outlay. Football Benchmark, a consultancy, estimated this year that the indebted club’s enterprise value was around £470m.

Miami firm 777 Partners agrees to buy Everton Football Club

Deal makes fund the latest American investor to buy into English Premier League

www.ft.com

Will he have a stake in the stadium tho

 

[Martin Alvito]

Deferred consideration is not that unusual in business sales

Sure, but I wouldn't take it from these guys. A guy who runs up a huge bill at the Bellagio he can't afford to pay, then gets sued by them over the balance, should not be considered creditworthy. That is what you're doing when you accept deferred consideration. You're making a loan as part of the purchase terms. If the other party goes bust, you're SOL on recovery.

That didn't just happen once, either. It was reported just this week that they were a month late in delivering a million pound payment to the British Basketball League. It speaks volumes that Moshiri agreed to structured payment. If anyone with real capital wanted us, all they would have to do is match the purchase price and pay up front. The implication would seem to be that he's selling because he has to, in the sense that he lacks the liquidity to finish the stadium build. He might have other assets he could liquidate, but he's probably decided that the tax implications are such that he's better off selling us and eating the loss.

 

[Goat]

Will he have a stake in the stadium tho

No idea, if I had to guess, I reckon he has just sold his shares, any money hes spent on the Stadium and any debts he had, will be "gone".

But I know nada.