LONDON (AP) — Everton, a renowned Premier League club, is facing an uncertain future following the collapse of a proposed takeover by American investment firm 777 Partners. The Miami-based private investment firm had reached an agreement in September to acquire the majority stake held by Farhad Moshiri, the current majority shareholder with a 94.1% ownership. However, the deal fell through as it was not finalized before the deadline.
Everton released a statement confirming the termination of the agreement, stating, 'The club will continue to operate as usual while it works with Blue Heaven Holdings to assess all options for the club’s future ownership.' The uncertainty surrounding the deal was exacerbated by mounting issues faced by 777 Partners in both business and sporting realms.
777 Partners, which owns soccer clubs in Germany, Italy, Belgium, and Brazil, has encountered challenges, including the administration of its Australian airline Bonza and legal action taken against its owners and others by a London-based asset management firm providing $600 million in financing.
Despite enduring a tumultuous season that saw two separate points deductions for financial rule breaches, Everton managed to secure its position in the Premier League for another year by avoiding relegation. The club, a founding member of the English Football League in 1888 and the Premier League in 1992, boasts a rich history with nine league championships, five FA Cups, and a European Cup Winners’ Cup title.
However, Everton has not clinched a major trophy since the FA Cup victory in 1995 and reported significant financial losses in its most recent accounts, amounting to $112.5 million. Moshiri, who had announced the sale in September citing changes in football club ownership and financing, intended to utilize the proceeds to complete the construction of a 52,888 capacity stadium.
Despite generating profits of $60 million from player sales, Everton's net debt surged to $417 million due to substantial investments in the new stadium. The club acknowledged the financial support provided by 777 Partners in recent months, emphasizing the firm's involvement in various soccer teams through its 777 Football Group, which includes Hertha Berlin, Sevilla, Genoa, Vasco da Gama, Standard Liege, Red Star FC, and Melbourne Victory.
As Everton navigates this period of uncertainty, the club's fans and stakeholders await further developments regarding its ownership and future direction.
