777 takeover collapse puts Everton at serious risk of administration and fire sale of players

The 777 Partners takeover collapse puts Everton at serious risk of administration and means a potential fire sale of players.

Club Statement: Update on agreement with 777 Partners. 🔵

— Everton (@Everton) June 1, 2024

STATEMENT:

Everton Football Club would like to provide the following update to all stakeholders, and particularly its supporters.

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.

The Board of Directors would like to thank everyone connected to Everton for their patience over recent months and reiterate its commitment to providing further updates when it is appropriate to do so through the Club’s official communication channels.

777 have handed over £200million to the Merseyside club during their takeover process to help cover operating costs and stadium construction fees.

Speaking on the Inside Track podcast, Pete O’Rourke said: “I imagine a deal could be agreed to add the 777 debt onto the price of the club.

“But 777 Partners could call in that debt and say that they want their money repaid.

“If that’s not repaid, there will be fears then of potential administration which would be a disaster for the club because then you would see assets sold for really low prices.

“John Textor has come out and admitted that he’d be interested in buying, but he’s got other issues to sort before he can do that as well.

“Farhad Moshiri has had 777 backing him up and keeping the club afloat.“

Football finance expert Kieran Maguire spoke this week on the current situation at Everton, prior to the 777 Partners’ takeover collapsing.

“I think it is a challenging position for Farhad Moshiri, the club and 777 Partners,” Maguire told Total Sport Merseyside. “They have all got consequences.

“From what we understand, 777’s period of exclusivity to acquire Everton Football Club expires at the end of May. That also may coincide with one of the big loans to the club being due for repayment at the same time.

“How that was going to be funded and organised, Farhad Moshiri probably thought that was going to be 777’s problem rather than his.

“So, it is a tricky position but it is in everybody’s interests for Everton Football Club to carry on.

“I think all of the stakeholders in this situation realise that, including the Premier League who have put some fairly significant obstacles in the way of 777 Partners buying the club.”

As to whether the administration rumours are correct, Maguire added: “I think in terms of administration, there are other parties interested in the club. I would think at least one of them has done the sums.

“If a football club goes into administration – and you buy that club from the administrators – you only buy the assets and you don’t inherit any of the debt. Therefore, you could buy Everton Football Club for a price which may be cheaper than buying it from Farhad Moshiri.

“You don’t have to pay MSP, you don’t have to repay 777, you don’t have to repay any of the other lenders – so you can see the benefits in that.

“The downsides are potential job losses, suppliers taking a significant cut to what they are owed, and the Premier League would take steps to address it.

“So there are positives and negatives to administration.”

There is some hope for the club and its supporters with Moshiri confirming last week to Everton’s Fan Advisory Board that he had received unsolicited approaches from interested parties.

American businessman John Textor reportedly set to sell his 40 per cent stake in Crystal Palace with a view to buying the Toffees.

When questioned if he had held talks about buying Everton, Textor said to The Athletic: “Yes. With the existing constituents – different groups, different lenders, different equity holders.

“I’ve asked them, ‘Is there a way to solve all this confusion and address everyone’s problems’?

“I’m very open-minded to it but I don’t want to come into a situation where I’m not really welcome.

“I’m watching it but 777 still has a contract. There are people that are close to the club who care a lot about it who are also investing.

“There’s the guy running it who’s still calling the shots. Maybe we’re uniquely positioned to solve a lot of problems for people but we’re just watching it right now because there are other people who already own pieces of that club who also want to figure it out.

“I’m looking at that but it’s quite confusing and some things have to clean up.”

This is how fans reacted with Everton at serious risk of going into administration as the 777 Partners takeover collapses…

@Lea_EFC: Conveying the very bare minimum of information. The fans deserve better than this.

@sfcwxl: Minus 10, Minus 10, Everton FC

@Ursie27608090: Time to crowd fund, £50 each from our huge fan base should get the ball rolling, please not administration and 9 points 💙

@N_Macca74: So what you’re saying is that you’re on the brink of administration with no buyer….it’ll be a sad day when you lot fold, a sad day indeed.

@ShrimptonJason: Not good enough that update.. Should be letting fans know whether Moshiri is going to continue to prop the club up in the meantime.. Fans are being pulled from pillar to post being told administration beckons.. The next its not! More transparency @Everton

@TheVillaYamYam: 777 have well and truly screwed the club, staff and fans out of millions in loans and now looking certain administration in the face unless a new buyer steps up fast……

@skjones505: Absolutely true. With nearly a billion of debt and Laing owed £98m and massive interest payments my first question would be who is paying the bills?

@Rich_NFFC: Administration knocking at the door?

@UpperGwladysBlu: Doesn’t say definitively that 777 won’t be taking us over. Doesn’t say ‘we are now moving on from them’. Shouldn’t be thanking these charlatans either, loaded the club up with a £200m debt. You don’t thank a bank for lending you money.

@oncewassven: Proper club with proper fans who deserve better

@EFCShantBeMoved: Utter shambles from start to finish, the Kenwright x Moshiri axis of doom was the worst thing to ever happen to Everton Football Club. Hoping and praying a competent owner/board come in asap to bring some stability and standards back to our great club 🙏

@MarkMp82: I do worry about Everton although I am a Liverpool fan I want both clubs in the prem good for the city and we would miss the derby days! No idea they have had long enough tho to find an owner.. someone will snap them up cheap

@PhilHook71: Now that the 777 deadline to buy Everton has expired, what now for the club? Their financial input prevented the club from going into administration, but the club is now £200m further in debt and no longer has further money coming in. Very worrying times for the club.

@colin2812: I’d put money on entering administration. In many makes selling the club a lot easier, but with the caveat, they’ll probably end up losing the shiny new stadium.

@LFCGavlar: Everton will go into administration before they’re bought out by a new buyer. I would imagine they’ll have to sell some of their best players too. Pickford & Branthwaite are likely to leave. Next season looking bleak already. The promoted clubs will be better than last season.

@Ursie27608090: Time to crowd fund, £50 each from our huge fan base should get the ball rolling, please not administration and 9 points 💙

@p_mcallister123: Thank Goodness. Absolutely scandalous that Moshiri ever agreed to sell to these people, it would have spelt the death of the club. We’re still far from out of the woods but this was a huge bullet dodged. Never want to hear about them ever again. #EFC

Everton narrowly avoided a major setback. Things may worsen before they improve, but the club will rise again when the right owner comes along at the right time. https://t.co/69vhNk3tzS

— Scott “Matchmaker” Michaels (@scottmatchmaker) June 1, 2024