The new potential owners of Everton, 777 Partners, may end up paying less for the club than they expected because of an impending points deduction. The American investors previously agreed to purchase the Merseyside team from Farhad Moshiri. The deal was worth over $600 million and includes Moshiri’s 94% majority stake in the club.
Nevertheless, there are now suggestions that 777 could soon receive a discount on their investment. Everton is currently in the middle of defending themselves against bending Financial Fair Play (FFP) rules. The Premier League side previously posted nearly $450 million in losses. League rules, however, limit these losses to about $127 million.
A hearing on Everton’s financial issues began last week in England. The club and Premier League officials are currently discussing the matter with an independent commission. If found guilty of breaching the laws, Everton faces a plethora of penalties. This includes a fine, a transfer embargo, and even a points deduction.
Recent reports have suggested that the top-flight division in England will recommend a 12-point slash in the standings. This would put Everton behind the eight ball. Although the current campaign is still young, the Toffees sit 16th in the standings, just three points from the relegation zone. Assuming the club is hit with the points deduction, they would then have -5 points in the league at the moment.
Ruling in FFP case could affect previous deal
The Times now reports that the deal involving 777 Partners and Moshiri would change depending on the outcome of the hearing. If Everton is found guilty of breaking FFP laws, Moshiri would then give 777 a significant discount. This would be down to the financial strain of impending fines and point deductions.
777 Partners have already attended games at Goodison Park as the prospective owners.
Imposing a 12-point subtraction would make Everton an overwhelming relegation candidate. The Toffees previously narrowly escaped the drop to the Championship in each of the last two seasons. In fact, the club managed to avoid relegation by just two points back in May.
Everton points deduction puts more questions on 777 Partners
Not only will the FFP hearing potentially affect the sale of the club, but 777 Partners is already under the microscope for separate financial issues. The American investment group currently owns a handful of other soccer teams around the world. One of the group’s clubs, Vasco de Gama, recently received a transfer ban by FIFA.
There was then another report that claimed 777 Partners failed to provide financial documents to a British regulator. The documents are needed to provide clarification on how the group will pay for Everton. The regulator involved, the Financial Conduct Authority, has to approve the deal for it to become official.
Fellow Premier League duo also facing possible sanctions
A potential point deduction for Everton could, in turn, have serious implications regarding Chelsea and Manchester City. The duo faces sanctions regarding FFP laws as well. Chelsea is currently being investigated by English authorities for apparent payments to offshore companies. These payments occurred while Roman Abramovich owned the club.
Manchester City, on the other hand, faces 115 total charges regarding similar FFP violations as Everton. The Toffees, however, only face questions about one specific charge. This means City faces a substantially stiffer penalty should authorities find it guilty.
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