777 Partners’ planned takeover of Everton is stalling. Farhad Moshiri previously agreed to sell his majority stake in the Premier League club to Miami-based 777 Partners. However, the deal may now be in doubt due to the investment group’s precarious financial situation.
According to a report by the New York Times, 777 has failed to provide official financial documents to a British regulator. The regulator, the Financial Conduct Authority, must review 777’s standing for the deal’s approval. Sources at the aforementioned news outlet claim that the Financial Conduct Authority requested financial documents from 777 earlier this month.
777 Partners has defended its takeover of Everton. The group confirmed it submitted all necessary paperwork to take ownership of the Merseyside club.
Reports show group has series of financial issues
The issue is certainly the most significant setback in 777’s quest to purchase Everton. However, it is not exactly the investment group’s only problem. In September, one of their other clubs, Vasco de Gama, received a transfer ban by FIFA. The Brazilian side is way behind on paying fees for previous transfer deals.
Another report from last month suggested that fellow Premier League clubs were not exactly confident with 777 Partners. Several English top-flight teams reportedly raised questions over the group’s financial situation. 777 has seemingly not disclosed how they will pay for the Toffees. There have been suggestions that Moshiri agreed to sell the club to the American firm for around $685 million.
Everton 777 takeover gloomy as FFP hearings begin
To complicate things even further, the Premier League has reportedly started its Financial Fair Play (FFP) case against Everton. Mail Sport suggests that the two sides, along with an independent commission, began the hearing earlier this week. The Premier League charged Everton with breaching FFP rules back in March. The Merseyside club posted nearly $450 million in losses over the last few seasons. League rules limit these losses to about $127 million.
An official ruling on Everton’s financial situation will not come out until November. If found guilty, the Toffees could face fines, a transfer ban, and even a points deduction. The latter would have a significant impact on the relegation race. Along with these headaches, Championship clubs threatened to sue Everton if the FFP charges hold up.
PHOTO: IMAGO & Colorsport
