Everton may face administration as takeover continues to stall

The pending ownership change at Everton is once again under threat, and the potential for administration is real. According to a report by Mail Sport, Premier League officials are taking their time in a review of the potential new owners of the club. Farhad Moshiri previously agreed a deal to sell a majority stake in the Toffees to 777 Partners back in September. However, the deal has hit several snags along the way.

777 Partners currently owns multiple soccer teams around the world. One of these clubs, Vasco de Gama, was punished with a transfer ban just weeks after the Everton agreement. At the time of the penalty, the Brazilian side allegedly had yet to pay off previous transfer fees.

Financial issues then continued to haunt 777 Partners throughout the fall months. The American investment group failed to provide official financial documents to a British regulator regarding the purchase of Everton. This regulator, the Financial Conduct Authority, has to approve 777’s financial standing for the deal to finish. 777 Partners then failed to disclose $600 million in losses as well.

777 Partners not willing to continue temporary funding

These issues are delaying the takeover at Everton. The aforementioned news outlet claims that English top flight officials have informed 777 Partners that the pending acquisition will not be approved before the end of the year. This is massive news considering Everton’s precarious financial position at the moment.

777 Partners previously loaned the Merseyside club $125 million since agreeing the deal with Moshiri. The move was to help Everton’s operating costs during tough times for the team. The Toffees previously picked up a deduction of 10 points due to recording losses that violated profit and sustainability rules (PSR).

While the American group was willing to loan Everton a nice chunk of change, they apparently will not continue doing so while they wait out the Premier League’s official decision on the deal. 777 Partners has a very complex corporate structure in place. It has a foot in over 60 businesses. This, along with the aforementioned issues, has complicated the Premier League’s review of the group.

Everton could go into administration without financial help

It would become extremely bad news for Everton should 777 Partners end their financial backing of the club. Despite still being at the helm, Moshiri has ended all funding of the Toffees. Money from the previous $125 million loan by 777 Partners is also apparently running out. The club needs around $25 million each month to pay wages and operating costs.

Assuming 777 Partners backs out of their temporary funding, Everton could even go into administration. If this was to happen, the Toffees could face yet another points penalty. The aforementioned news outlet even claims that they would lose an additional nine points in the Premier League table.

Both Everton and 777 Partners, however, still believe that the deal will eventually go through. The American investors also claim that they have not received an official word on a specific timeline of the review.

Despite the 10-point deduction, the Toffees managed to get out of the relegation zone. The club has recorded three consecutive victories in league play and has won four of their last five matches. As a result, Everton now sits four points away from the drop zone in 17th place.

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