Premier League officials are increasingly scrutinizing the proposed takeover of Everton FC by 777 Partners, as they question the Miami-based investment firm's financial standing, according to inside sources. The deal, which was agreed upon in September, is subject to approval by the Premier League and the UK's Financial Conduct Authority. As the review progresses, it remains unclear how the Premier League will ultimately rule on the matter. Both the Premier League and Everton declined to comment, but it is reported that the Premier League has demanded additional financial information from 777 Partners.
Everton, founded in Liverpool in 1878, is a storied football club in England's top division, but it has struggled both on and off the pitch in recent years. Despite its historical significance, the team has not won any trophies since 2009 and last claimed the league title in 1987. Financial difficulties have compounded the club's challenges, and a recent breach of financial rules imposed a 10-point deduction, putting Everton at risk of relegation.
The proposed acquisition of 94.1% of Everton by 777 Partners was announced in mid-September after ongoing discussions between the firm and owner Farhad Moshiri. However, prospective buyers must pass the Premier League's rigorous Owners' and Directors' Test, which assesses their ability to provide a reliable source of funding and accurate information. Reports in October stated that the deal had stalled due to 777 Partners' failure to provide audited financial statements to the Financial Conduct Authority.
In addition to Premier League scrutiny, 777 Partners faces potential investigation by the US Justice Department, according to a report. However, the firm vehemently denies any knowledge of an investigation and considers these allegations to be deliberately timed to undermine their ongoing activities, including the regulatory approvals process for the Everton acquisition.
777 Partners is part of a growing trend of multi-club ownership in world football, having acquired a diverse portfolio of historic teams across various countries. However, their financial strength has recently come under question, with credit rating agency AM Best downgrading the financial strength of their reinsurance business, 777 Re, from "Excellent" to "Fair." The agency highlighted a lack of audited financial statements for the past two years and deemed the balance sheet strength weak, indicating negative implications for their ratings.
As the Premier League continues its review and considers the potential implications of 777 Partners' financial situation, Everton has also appealed the recent 10-point deduction. It remains to be seen how these developments will impact the future of Everton FC and the proposed takeover by 777 Partners.