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The long-awaited decision on whether American investment firm 777 Partners will be approved to take over Everton Football Club is imminent, with the same independent panel that ruled on Sir Jim Ratcliffe’s acquisition of a stake in Manchester United set to have the final say.
According to reports, Everton and their prospective new owners can expect a verdict from the Premier League’s Independent Oversight Panel as soon as next week, potentially bringing an end to months of uncertainty surrounding the proposed £600 million deal.
The Liverpool Echo reports that the same panel members who reviewed and ultimately signed off on Ratcliffe’s purchase of just over 25% of Manchester United’s shares earlier this year will now scrutinize the 777 Partners takeover bid at Everton.
“The checks will be carried out by a body called the Independent Oversight Panel, which has the power to send the case back to the Premier League board if it considers it did not reach a ‘reasonable’ conclusion,” wrote Joe Thomas of the Echo. “The panel was created after changes agreed by top-flight clubs in March of last year. The first decision to be reviewed was that of Sir Jim Ratcliffe’s acquisition of 25% in Manchester United earlier this year.”
The Independent Oversight Panel was established last spring as part of the Premier League’s enhanced Owners’ and Directors’ Test, designed to more rigorously vet prospective buyers of Premier League clubs. While the league’s board retains authority to initially approve or reject takeover bids, the new panel serves as an additional layer of scrutiny.
“The Everton takeover bid is likely to be the second time such a panel is called into action, with the one that assessed Ratcliffe’s move having been the first,” Thomas continued. “The Premier League only publicly confirmed Ratcliffe’s approach had been approved by its board after that panel had backed its original decision.”
For Everton and 777 Partners, this represents the final hurdle in a takeover process that has dragged on far longer than anyone anticipated. The two parties struck an initial agreement for 777 to acquire Farhad Moshiri’s 94.1% controlling stake in the club back in September. At the time, all parties expressed confidence the deal would be finalized by the end of 2023.
However, the Premier League’s rigorous vetting of 777’s finances, business operations, ownership structure and overall suitability as Everton’s custodians has taken nearly six months. In the interim, 777 has provided roughly £180 million in loans to keep the cash-strapped Merseyside club afloat and fund construction of their new £500 million stadium at Bramley-Moore Dock.
Those loans would be converted to equity and 777 would assume control of the club should their takeover ultimately gain approval from the Premier League. If rejected, 777 would fall behind Everton’s existing creditors in the repayment queue, raising serious questions about the club’s future financial viability.
The delays have only heightened scrutiny on 777 Partners and their unconventional multi-club ownership model that has seen them acquire stakes in clubs across Europe, North America and South America in recent years, including Genoa, Standard Liege, Vasco da Gama and more.
Concerns have been raised about 777’s lack of transparency regarding their primary revenue streams, as well as the group’s perceived struggles in adequately funding some of their other club investments. Standard Liege, for instance, was hit with a transfer ban last fall for failing to pay outstanding fees, while 777’s insurance subsidiary had its credit rating downgraded due to balance sheet issues.
Those potential red flags, coupled with the Premier League’s new enhanced vetting process in the wake of issues surrounding the Saudi-backed takeover at Newcastle, help explain the protracted timeline for a decision on 777’s Everton bid.
For their part, 777 co-founders Josh Wander and Steven Pasko have maintained confidence throughout that they will pass the Premier League’s checks. Wander has been a regular presence at Everton matches in recent months, while the group has continued pumping money into the club as a show of commitment.
Should they ultimately gain approval, 777 would take the reins from Moshiri, whose turbulent eight-year ownership has been defined by heavy spending and mounting losses in pursuit of a long-awaited return to European competition that has never materialized.
Moshiri, who acquired his initial stake at Everton in 2016, has seen his wealth dwindle in recent years. With costs continuing to mount from the club’s lavish new waterfront stadium project, he has been forced to seek outside investment.
After failed talks with other groups, Moshiri struck a deal to sell out entirely to 777 Partners last fall. In a statement at the time, he acknowledged that the days of wealthy owner-benefactors like himself propping up clubs were fading.
“The nature of ownership and financing of top football clubs has changed immeasurably since I first invested in Everton,” Moshiri said. “The days of an owner/benefactor are seemingly out of reach for most, and the biggest clubs are now typically owned by well-resourced PE firms, specialist sports investors or state-backed companies and funds.”
While Everton supporters have grown impatient with Moshiri’s stewardship, there is no guarantee 777’s prospective ownership will be an improvement. Their multi-club model has been criticized by some as diluting focus and resources across their various investments.
There are also lingering questions about where exactly 777’s money is coming from and whether they have the capability to consistently fund all of their clubs, Everton included, at the level required to be competitive in the Premier League.
Those are among the issues the Independent Oversight Panel has been tasked with examining as they prepare to make a final ruling in the coming days. Their decision will shape not just Everton’s future, but could have far-reaching implications across English football’s landscape.
A rejection of 777’s bid would send Everton back to the drawing board in their desperate search for new investment. It could even raise the possibility of a Wigan- or Bournemouth-esque financial implosion that results in a future ownership change being forced through bankruptcy proceedings.
Conversely, if approved, 777 would become one of the Premier League’s most unique and powerful actors. In addition to Everton, they would simultaneously control destinies of clubs in Italy, Belgium, Brazil, Germany, France and Australia through their multi-club network.
Such a degree of cross-ownership in elite European football is unprecedented. While multi-club models have existed before, most involve feeder clubs across different tiers and markets designed to facilitate player development and trading. 777’s approach of maintaining top-division clubs across multiple major leagues is uncharted territory.
Critics have raised concerns about conflicts of interest, arguing 777’s business incentives would be to treat certain clubs as more important assets than others based on the respective market values and revenue streams. There are also potential integrity issues around clubs under the same ownership facing off in competitions like the Europa League or Champions League.
The Premier League’s Owners’ and Directors’ Test is designed to address such issues and ensure prospective buyers have a sustainable long-term plan that preserves the integrity of the competition. Whether 777 Partners clears that bar remains to be seen.
For Everton supporters, the interminable wait for new ownership and a fresh injection of investment has been agonizing. Once regulars in European competition and FA Cup finals, the club has fallen on increasingly difficult times over the past three decades amid a string of failed managerial tenures and player acquisitions.
The promise of new, well-resourced owners backed by a state-of-the-art stadium would offer hope of finally restoring the club as a force to be reckoned with. But those dreams could just as easily be dashed if 777’s takeover is blocked, leaving Everton stuck in a perpetual cycle of underachievement.
All will be revealed in the coming days when the Independent Oversight Panel makes its ruling. For one of England’s historic clubs mired in an extended period of turmoil and uncertainty, that long-awaited decision could mark the start of a new era – for better or worse.
Citations:
[1] https://www.thetimes.co.uk/article/premier-league-777-partners-everton-takeover-g2qzqxrws
[2] https://www.goodisonnews.com/2024/03/17/everton-takeover-news-777-partners-manchester-united-precedent/
[3] https://www.777part.com
[4] https://theathletic.com/5277354/2024/02/16/everton-777-takeover-delay-premier-league/
[5] https://www.newsnow.co.uk/h/Sport/Football/Premier%2BLeague/Everton/Takeover
[6] https://www.washingtonpost.com/sports/2023/09/29/everton-777-partners-josh-wander/
[7] https://www.liverpoolecho.co.uk/sport/football/football-news/everton-takeover-777-partners-nearing-28638896
[8] https://talksport.com/football/1756895/simon-jordan-very-worried-everton-777-partners-takeover/
[9] https://www.itv.com/news/granada/2023-09-15/everton-sold-to-american-investment-fund-in-new-takeover-deal
[10] https://onefootball.com/en/news/paul-joyce-777-partners-and-premier-league-talks-39119726
[11] https://www.goodisonnews.com/2024/03/11/everton-takeover-premier-league-need-to-investigate-another-777-partners-development/
[12] https://www.skysports.com/football/news/11671/13083187/proposed-new-everton-owners-777-partners-to-meet-premier-league-in-next-fortnight-as-takeover-process-drags-on
[13] https://www.thetimes.co.uk/article/premier-league-asks-777-partners-to-show-they-can-fund-everton-rzbnmxb50
[14] https://www.independent.co.uk/sport/football/everton-takeover-777-latest-news-updates-b2499400.html
[15] https://www.liverpoolworld.uk/sport/football/everton/premier-league-approve-takeover-as-everton-and-777-partners-wait-goes-on-4516935
[16] https://www.givemesport.com/everton-777-partners-investment-takeover-news/
[17] https://www.liverpoolecho.co.uk/sport/football/football-news/777-partners-takeover-stance-after-28450052
[18] https://www.footballinsider247.com/sources-777-partners-now-expect-everton-takeover-to-be-rejected/
[19] https://www.toffeeweb.com/season/23-24/news/44542.html
[20] https://royalbluemersey.sbnation.com/2024/1/8/24030608/everton-takeover-latest-777-partners-premier-league-approval-owners-and-directors-test-wander-pasko
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