Everton have confirmed 777 Partners’ proposed takeover has fallen through following the expiry of the purchase agreement.
The Miami-based group’s deadline to complete the acquisition
of Farhad Moshiri’s majority stake passed at 5am (BST) on Saturday, with the
Anglo-Iranian businessman not minded to grant another extension.
A club statement read: “The agreement between 777 Partners
and Blue Heaven Holdings Limited for the sale and purchase of the majority
shareholding in the club expired today. The club’s board of directors
recognises the considerable level of financial support 777 Partners has
provided the club over recent months and would like to take this opportunity to
thank them for this.
“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.
There will be no tears shed over the collapse of the 777
deal, but attention immediately turns to what comes next for Everton. Like it
or not, there are no easy answers, with Moshiri now forced to go back to the
drawing board.
Many have questioned why he persevered with a stalling 777
bid in the face of so many red flags. The terms of the original deal, which
would have led to financial penalties had he walked away and saw 777’s loans
help with working capital and new stadium payments, created a situation where
both he and the Premier League allowed this to rumble on for far too long.
The lag has been damaging; their £200m debt makes it tougher
for new investors to do a deal and get Everton back on an even keel. Exactly what comes next is uncertain. Or, to
be more precise: who. Yet the elapse of the agreement at least leaves the club
free to pursue alternatives.
There has been interest in Everton, including from Palace
shareholder Textor. But this is now a new process where prospective investors
will have to agree a deal and then go through the same checks which proved a
stumbling block for 777. Textor would also have to sell his stake in Palace — a
considerable barrier.
Everton’s existing creditors, MSP and Rights and Media
Funding, will have a big say. The latter derailed MSP’s own investment last
summer, while the former could have assumed majority control in April had they
not agreed to extend the repayment date on a £160m loan they advanced to the
club a year ago. That date has been extended several times since, suggesting
they have little interest in being long-term incumbents.
There is a sense that Everton-supporting businessmen Andy
Bell and George Downing, two members of the original MSP consortium looking to
invest in Everton, will also be key in finding a solution.
They can no longer rely on 777’s loans to help, although
sources close to the club and Moshiri say that there is no immediate repayment
clause as part of that deal.
A fresh tranche of broadcast revenues will help, as will
healthy season ticket renewals. But Everton head into the summer knowing player
sales will also be needed. This is still a club losing money every month and
with part of a costly stadium project to fund.
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