Everton Football Club has received a delayed payment of £16 million from prospective buyers 777 Partners to cover day-to-day operational costs. This brings the total amount loaned by the Miami-based investment fund to over £200 million. The deal for 777 Partners to buy owner Farhad Moshiri’s 94% stake in the club was agreed upon in September but is yet to be ratified by the Premier League. However, the main hurdle remains the £158 million loan repayment to MSP Sports Capital, which was taken out for the construction of Everton’s new stadium on Bramley Moore Dock.
Although the latest payment was delayed, it is seen as a demonstration of 777 Partners’ commitment to taking over the club. They have previously provided working capital when asked, indicating a genuine interest in completing the deal. Despite the financial challenges, Everton’s recent on-field success is commendable. Their 1-0 victory over Brentford on Saturday secured their place in the Premier League for another season, with 11 points separating them from the relegation zone.
While Everton is not currently seeking insolvency advice, they are exploring options to restructure their short-term debt to make it more manageable. The club owes approximately £400 million to various third-party firms, with a significant portion of these loans allocated toward the stadium construction. Fortunately, there is no immediate threat of administration as Everton has remained up to date with payments to stakeholders such as players, staff, stadium construction company Laing O’Rourke, and HMRC.
However, Everton’s financial situation is not the only concern for 777 Partners. On Tuesday, their owned airline Bonza entered voluntary administration, leading to the sudden cancellation of all flights and leaving thousands of passengers stranded across Australia. This situation raises questions about the stability and financial standing of 777 Partners as a whole.
In addition, 777’s UK public relations advisers have ceased representing the company after they failed to meet payment obligations. It remains to be seen whether they will resume their services for 777 Partners in the future. These recent developments further contribute to the uncertainty surrounding the completion of the deal between 777 Partners and Everton.
Ultimately, Everton’s focus remains on finalizing the agreement with 777 Partners, as they believe it is crucial for the club’s long-term stability and success. The delayed payment, despite the ongoing challenges faced by 777 Partners, indicates a continued commitment from the prospective buyers. However, it is essential for Everton to carefully navigate their financial situation and ensure that they can manage their debt effectively to safeguard the club’s future.