Fresh doubt has been raised over 777 Partners’ ability to buy Everton after the Miami-based investment company asked for more time to complete the deal.
The American company had been seeking to close the protracted takeover by the end of this week, with part of a £158m loan to MSP Sports Capital and two local business people, Andy Bell and George Downing, due to be repaid by Monday under conditions set by the Premier League.
However, Sky News has reported that 777 requested an extension as it seeks to raise the funds needed to acquire Farhad Moshiri’s 94.1% shareholding in the troubled club. It is unclear whether MSP, who withdrew from talks to acquire a minority stake in Everton last year, Bell and Downing have responded to the request.
Moshiri agreed a deal with 777 eight months ago but the company, which has faced numerous legal challenges in the US and recent financial difficulties, has been unable to conclude the takeover.
The Premier League said last month that it was “minded” to approve the takeover providing several conditions were met by 777. These include part repayment of the MSP/Bell/Downing loan by 15 April, the deposit of £60m into an account for use by Everton and the conversion into equity of at least £160m the company has already loaned to the club. Another condition requires 777 to prove it has sufficient funding to complete the construction of Everton’s new stadium at Bramley-Moore dock.
Sky reports that 777 has told the Premier League and prospective lenders it now expects to complete the Everton takeover late next month, having approached several potential lenders for help in funding the deal. One is understood to be Blue Owl Capital, a US-based private credit provider.
Everton’s Premier League status is in jeopardy after the club were docked a further two points on Monday for breaching profitability and sustainability rules (PSR) by £16.6m up to 2023. Sean Dyche’s team received a six-point deduction earlier this year for financial breaches up to 2022.
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The second case against Everton remains unresolved, however, with the club in dispute with the Premier League over excluding stadium interest payments from its PSR calculations in 2021, 2022 and 2023. Another hearing, that carries the possibility of a third points deduction, will take place after this season has ended.
Source: theguardian.com
