US investment firm 777 Partners have moved on from Everton after Farhad Moshiri entered into an exclusivity agreement with MSP Sports Capital on Monday.
Miami-based 777 had been in talks with Toffees owner Moshiri in recent weeks over an investment deal, potentially acquiring a controlling interest in the club, as they looked to add more clubs to a growing portfolio of football clubs that includes Vasco da Gama, Standard Liege, Hertha Berlin, Red Star FC, Melbourne Victory and Sevilla.
It had been reported last week that Moshiri had agreed non-binding deals with caveats attached with both 777 and MSP, with the two parties offering very different investment options to the Toffees owner as he seeks to find the final tranche of funding for the stadium build at Bramley-Moore Dock.
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Sources in the US familiar with the matter had told the ECHO on Wednesday that 777 Partners had now moved on from Everton after Moshiri’s decision to progress in the direction of New York-based MSP, who are understood to be seeking a 20 to 25 per cent stake in the club via a preferential share structure, meaning they won’t hold equity in the club but will be providing the financing that Moshiri has been seeking, albeit charging interest.
MSP will have the chance to turn the preferential shares into equity at a later date should they wish, and while there will be no voting privileges that come with preferential shares, it is understood that MSP will likely have some members of its senior leadership team on the Everton board given the firm’s modus operandi focused on having some element of operational control when it comes to its investments.
While Moshiri entering into an exclusivity agreement with MSP may seem to automatically suggest the ending of any other interest the period, which usually lasts for a period of 30 or 60 days, allows for full due diligence to be carried out and negotiations to continue without the added pressure of potential rival bids. It is not, however, a binding agreement that guarantees a deal will be reached.
Moshiri entered into an exclusivity agreement with the Peter Kenyon/John Thornton/Maciek Kaminski consortium last summer, with talks having centred on a full takeover of the club. No agreement was reached and the exclusivity period ended with the US consortium and Moshiri breaking off from negotiations.
777 are understood to now be focusing on other investment opportunities, with the focus for Moshiri and Everton on finalising a deal with MSP in a timely fashion, with both parties keen to find a positive resolution.
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