Sport nationThe future of Everton Football Club hangs in the balance as their prospective new owners, the American investment firm 777 Partners, have issued a serious threat to withdraw all funding from the club at the end of March if their takeover deal is not approved soon by the Premier League. This development is a “serious cause for concern” according to football finance expert Kieran Maguire, who believes current Everton owner Farhad Moshiri seems “unwilling or unable” to cover the club’s costs himself if 777 Partners follow through on their ultimatum.
Everton have been in a precarious financial position for some time now. The club has posted heavy losses in recent years that violate the Premier League’s profit and sustainability rules, which resulted in a 10-point deduction this season, later reduced to 6 points on appeal. Moshiri has poured over £750 million into the club since becoming majority shareholder in 2016, but with little to show for it on the pitch as Everton has flirted with relegation the past two seasons.
Recognizing the need for new investment, Moshiri reached an agreement back in September 2023 to sell his 94.1% stake in Everton to 777 Partners for a reported £550 million. The Miami-based firm, which already owns a network of clubs around the world, was seen as an attractive option to provide an infusion of cash, help fund the construction of Everton’s costly new stadium project at Bramley-Moore Dock, and put the club on a more stable long-term financial footing.
However, the takeover process has not gone smoothly. The deal is still awaiting approval from the Premier League, which has been conducting an in-depth review of 777 Partners’ suitability as owners over the past several months. Issues have arisen regarding the firm’s complex corporate structure and business dealings, as well as legal troubles faced by one of the co-founders Josh Wander, who has a past drug conviction. The Premier League’s beefed up owners’ and directors’ test is taking a hard look at 777 Partners and has requested additional information and assurances from them.
In the meantime, 777 Partners has already loaned close to £200 million to Everton since the takeover agreement to help the cash-strapped club cover operating costs and stadium construction expenses in the short term. This temporary funding was meant as a show of good faith and commitment to Everton. However, 777 Partners is now using this as leverage, threatening to cut off the cash lifeline and potentially even recall the loans if the Premier League does not green light their takeover deal by the end of this month.
“777 have been playing a game of brinkmanship and diplomacy since they first were involved and recommended as preferred bidders for Farhad Moshiri’s shares,” Kieran Maguire told Football Insider. “This latest threat of withdrawing further funding to Everton can’t be taken lightly.”
The prospect of 777 Partners pulling their financial support would be disastrous for Everton at this critical juncture. The club is already walking a financial tightrope and has grown reliant on 777’s loans to keep the lights on in recent months. Everton requires around £25 million per month to cover wages and operating costs. Without 777’s backing, it’s unclear where that money would come from, as Moshiri appears unwilling or unable to foot the bill himself any longer after years of free spending.
“It is a serious cause for concern given that Moshiri appears to be either unable or unwilling to provide further financing himself,” Maguire said. “Looking at the position of Everton, their major issue is the payments for the continued development of the Bramley Moore Dock Stadium. If 777 doesn’t loan the money, it’s very difficult to see anybody else who is willing to do so.”
Everton’s new 53,000-seat stadium, currently under construction, is seen as vital to the club’s long-term future and ability to compete financially with other Premier League clubs. But the project, initially budgeted at £550 million, has already seen costs balloon to over £760 million. 777 Partners’ takeover deal and financial backing is crucial to seeing the stadium through to completion.
If 777 Partners were to abandon ship now, Everton could face the very real possibility of falling into administration – a formal insolvency process that occurs when a company becomes unable to pay its debts. Administration would be a worst-case scenario, triggering an automatic 9-point deduction in the Premier League that would almost certainly doom Everton to relegation given their current predicament in 17th place, just 4 points above the drop zone. The club’s very existence could be threatened.
The fact that the situation has reached this point reflects the high-stakes game of chicken currently being played out between 777 Partners, Farhad Moshiri, and the Premier League. By issuing this threat and imposing a hard deadline, 777 Partners appears to be attempting to force the Premier League’s hand and expedite approval of their takeover deal. They are betting that the Premier League will not want to risk being responsible for tipping Everton over the financial cliff and jeopardizing one of English football’s most historic clubs.
At the same time, 777 Partners also seems to be losing patience and confidence that the deal will ultimately go through. After all, they have already sunk hundreds of millions into Everton without any formal control over the club yet. The Premier League’s lengthy, cautious review process, while understandable and necessary, has left the takeover deal shrouded in uncertainty for months. By threatening to pull out now, 777 Partners may be hedging their bets and giving themselves an exit ramp if they believe the takeover is unlikely to be approved.
For Farhad Moshiri and Everton, the sudden prospect of 777 Partners walking away would be a nightmare scenario. Moshiri has been seeking outside investment for some time to help complete the stadium financing and stabilize the club, but 777 Partners was by far the most appealing and well-resourced group to step forward. Their proposed takeover seemed to align with Moshiri’s vision of making Everton a global brand as part of a multi-club ownership model. If the 777 Partners deal falls through now, after coming so close, it’s unclear if any other investors would be willing to step into the breach and take on the substantial financial commitments required. Everton could be left in limbo.
The ball is now firmly in the Premier League’s court. The urgency and pressure on them to make a decision on 777 Partners’ takeover proposal has ratcheted up immensely with this new threat. They will need to weigh the potential risks of approving the deal – including 777 Partners’ complex business structure and legal issues – against the very real danger of Everton collapsing into administration or worse without the takeover going ahead. It’s an unenviable position to be in.
For Everton supporters, this latest development only adds to the sense of unease and frustration surrounding the club’s ownership and financial situation. The fan base has already grown restless with Moshiri’s stewardship after years of underachievement on the pitch and reckless spending off it. The 777 Partners takeover was viewed by many as a necessary evil – a lifeboat to keep the club afloat, even if it meant ceding control to faceless American investors. But now even that rescue plan appears to be on shaky ground.
The next few weeks will be pivotal in determining Everton’s fate, both in the short and long term. The very real possibility of administration looms if the 777 Partners takeover is not approved and their funding is withdrawn. That would be a devastating blow for a proud club that has been an ever-present in the top flight of English football since 1954. Relegation, points deductions, fire sales of top players, and cutbacks to the stadium project would likely follow. It could take years, if not decades, to recover.
But even if the takeover is approved in the nick of time, Everton’s future remains murky. Hitching the club’s wagon to 777 Partners and their multi-club ownership model is still a leap into the unknown. How much would they be willing to invest in the playing squad to make Everton competitive again? Would Everton simply become a feeder club for 777 Partners’ other properties like Genoa and Sevilla? These are the types of concerns on the minds of supporters.
What’s clear is that Everton’s long-term health and stability likely hinges on the successful completion of the Bramley-Moore Dock stadium project above all else. The increased matchday revenues and commercial opportunities of a modern stadium are essential for Everton to keep pace financially with other Premier League clubs. Safeguarding the funding and timeline for the stadium has to be the top priority for whoever ends up owning and running the club, whether that’s 777 Partners, Moshiri, or someone else.
The coming days and weeks will be a nervy time for everyone associated with Everton Football Club. The 777 Partners takeover saga is approaching a climax, one way or another. The Premier League’s decision, and 777 Partners’ subsequent actions, could alter the trajectory of the club for years to come. Will Everton emerge from this period of turmoil and uncertainty with a brighter future ahead, or will they be consigned to a painful new era of decline and mediocrity? For now, all Evertonians can do is anxiously wait and hope.
Citations:
[1] https://worldsoccertalk.com/news/everton-may-face-administration-as-takeover-continues-to-stall-20231212-WST-476730.html
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