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Everton at a critical point on and off the pitch

The saga of 777 Partners’ proposed buy-out of the Everton’s owner, Farhad Moshiri, is now reaching a critical juncture.   As is so often the case with mismanagement, it is the loyal fans of a historic club who suffer through no fault of their own.

The takeover saga has dragged on since last September when Moshiri agreed to sell to the Miami-based company, whose purchase of his 94.1 per cent stake is the subject of strict conditions from the Premier League.

One of those parameters is the repayment of a £158 million loan by April 15 for the construction of the club’s new stadium at Bramley-Moore Dock. The loan is split between MSP Sports Capital, whose attempts to buy into the club foundered last summer, Everton-supporting local businessmen George Downing and Andy Bell, and Moshiri himself.

While 777, co-owned by Josh Wander and Steve Pasko, bullishly maintains it will repay the money by the deadline, there remains scepticism about the capabilities of a firm whose financial practices and structure have been exposed to unwanted scrutiny by investigative publications such as Josimar.

The Premier League said it was “minded” to grant approval to the takeover subject to its conditions being met, which felt like code for it retaining some misgivings. Dialogue has continued this week but the authorities are still not fully satisfied that everything is on course for a change of control at the top of the club.

What happens if 777 falls by the wayside is a multimillion-pound question. So far it has provided about £180 -200 million in loans to cover the club’s monthly running costs. If it stops providing funds, someone else will have to write a £30 million pay cheque every four weeks for staff, player and stadium costs.

Moshiri’s plan B — if there is one — is unclear. There is interest from another American group, which does not have a sporting background but is believed to be cash rich, but they remain in the shadows.

Downing and Bell, who are owed about £50 million, act as security agents on the new 52,888-seater stadium and saving that project would require a payment to constructors Laing O’Rourke at the end of the month as part of a fresh commitment north of £100 million. 

But completing the new ground is less onerous a financial task than taking over a once-proud institution, whose debts are currently at £330.6 million, as outlined in the latest set of accounts published last Sunday.

Securing fresh funding for a long-term plan would be easier if Everton’s place in the top flight were not in jeopardy, which is why the coming weeks are so important.

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