The potential change of ownership at Everton has taken yet another hit. Farhad Moshiri, the Merseyside club’s current majority owner, previously agreed to sell the team to 777 Partners. However, there have been multiple setbacks regarding the possible new regime.

Fellow Premier League sides almost immediately privately voiced their concerns regarding the financial standing of 777 Partners. Just weeks later there were reports that another team in the group’s portfolio was hit with Financial Fair Play (FFP) violations. 777 Partners currently holds majority stakes in Genoa, Standard Liège, Red Star FC, CR Vasco da Gama, and Hertha BSC. The Americans also have minority shareholdings in Sevilla and Melbourne Victory FC.

Everton takeover by 777 Partners: The U.S. group failed to tell regulators of the huge loss

However, the biggest blow to 777 Partners’ attempts at purchasing Everton came in October. Reports surfaced that the investors failed to provide official financial documents to a British regulator.

The regulator, the Financial Conduct Authority, must review 777’s standing for the deal to be approved. Sources at the New York Times claim that the Financial Conduct Authority requested financial documents from 777 earlier in October. Nevertheless, the group insisted that they submitted the correct paperwork.

It is now being reported by the website Josimar Football that 777 Partners lost nearly $600 million between June 2021 and June 2022. This significant financial erosion was also not apparently submitted to the aforementioned regulators. The lack of communication regarding the major loss only raises further doubt about a potential takeover at Everton.

777 Partners looking for massive money from investors

In an attempt to help their shaky financial standing, 777 Partners is reportedly searching for additional funding. In fact, according to a report by The Athletic, the group is asking for around $250 million from possible investors. 777 Partners have even put together a slideshow for these potential financial backers.

The influx in cash would, however, not supposedly be used to purchase Everton. 777 Partners would seemingly use their own money for the proposed deal. Instead, investors would essentially be buying into the group’s entire package.

“Project Echo” is essentially a conglomerate that includes all seven of 777 Partners’ current lineup of clubs. Everton would seemingly become their eighth piece of the puzzle. In all, the group of teams apparently generates a total revenue of about $842 million. In the aforementioned slideshow, 777 Partners have supposedly left out the fact that the Toffees lost nearly $530 million in the last five years.

While the Premier League side may not even be owned by American investors, the club takes up a massive piece of the financial pie in Project Echo. Everton, along with Sevilla, currently consists of almost two-thirds of the total revenue of Project Echo. 777 Partners currently only has a 15% stake in the Spanish club.

American group claims soccer to be a ‘recession-proof industry’

Part of the sales pitch to potential investors also includes crucial reasons why backing Project Echo is a solid move. The group claims that soccer is a “high-growth sector driven by the proliferation of content and significant increases in media rights valuations.” 777 Partners also says that the sport is a “historically recession-proof industry,” something that has shown to not exactly been the case.

It remains to be seen if the American group can attract serious investors to the project. Nevertheless, the company seemingly needs a significant outside cash influx to continue on with its future plans.

Photo: IMAGO / Action Plus.