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777 takeover has fallen through, so what now for Everton?

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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