Alternative buyers for Everton could be found

Alternative buyers for Everton could be found very quickly if the increasingly troubled deal with 777 partners fell through: https://www.liverpoolecho.co.uk/sport/football/football-news/everton-takeover-alternative-buyers-could-29115644

777 partners have been accused of fraud in a civil filing in a court in New York: https://www.bbc.co.uk/sport/articles/cprgxj4zlneo

The complainant this time is London-based investment firm Leadenhall and the civil suit it has filed against 777 Partners, some of its portfolio companies, its co-owners Steven Pasko and Josh Wander, its close partner A-Cap and its boss Kenneth King runs to 82 pages. And there is a wounding zinger on each page.

But perhaps the easiest place to start is simply to say this must surely be the end of 777’s almost eight-month attempt to complete its purchase of Everton, and very possibly the end of 777, too.

The allegations are staggering, although to many they will not really come as a huge surprise.

After all, Leadenhall’s complaint, which was filed in a U.S. district court in New York on Friday, notes that 777 and its associated companies are already the subject of 16 different lawsuits over unpaid debts totalling more than $130million ($104m). Leadenhall, for what it is worth, says it is owed more than $600m by the group.

Leadenhall says 777 and its affiliates owe A-Cap more than $2billion, not that it thinks A-Cap itself deserves any sympathy, as Leadenhall believes A-Cap is in on the scam.

The central allegation is that 777 and its associated companies set up a credit facility with Leadenhall in 2021 that was secured against assets that had to be “free and clear” of all other potential claims. And the unencumbered status of these assets had to be confirmed to Leadenhall by the group every month. This enabled the 777 group to borrow lots of money from Leadenhall, at a relatively low interest rate.

However, a combination of anonymous tip-offs, forensic accounting, conversations with other lenders and, even, admissions from 777’s main man Wander himself led Leadenhall to the conclusion that what was going on here was “a giant shell game, at best, and an outright Ponzi scheme, at worst”.

Instead of “free and clear”, most of 777’s collateral either did not exist or it was “double-pledged”. Oh, and the borrowers forged documents and faked records to hide its deception, Leadenhall claims.

The plan, as far as Leadenhall can fathom, was to funnel money, usually borrowed money, into “speculative bets” on airlines, payday lenders and football clubs, with Everton being the biggest and most important bet of all.

777 have declined to comment but their usual line is they never comment on ongoing litigation.