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New regulatory threat to Everton bidders

Regulators in the US states of Utah and South Carolina are moving to force five insurers to cut their exposure to the Miami investment firm 777 Partners, according to an official memo seen by the Financial Times. Their demands are intended to protect retirees, widows and orphans relying on annuities and other products from the insurers.

They mark the latest fallout from a dealmaking spree in which 777 has bought sports teams around the world and come as it is bidding for Everton. 

The potential for forced sales of investments comes as 777 is under heightened scrutiny and faces multiple lawsuits from creditors.

Initially, 777 Partners made its money in esoteric corners of finance such as structured settlements. Its bid to buy Everton, the nine-time English champions, from British-Iranian Farhad Moshiri has pulled it into the spotlight, drawing scrutiny from local politicians, journalists, insurance analysts and regulators.

It is unclear how 777 Partners will fund a takeover of Everton if approved, although the firm has provided at least £150mn of loans to the club since September.

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