Miami-based firm 777 Partners' proposed acquisition of Premier League team Everton F.C. is facing potential disruption due to the absence of necessary audited financial statements, according to the UK's Financial Conduct Authority. The deal, which includes substantial assumed debt and a place in the world's wealthiest soccer league, is now under scrutiny.
Everton F.C., already burdened by the costs of a half-built stadium, over $500 million in debt, and an estimated annual loss of $100 million, relies heavily on monthly cash injections to stay afloat. These injections have recently been facilitated via a loan from 777 Partners. If the deal falls through, Everton's financial situation could worsen.
Despite these challenges, Everton's owner, Farhad Moshiri, remains hopeful about the deal. However, for the takeover to proceed, 777 Partners must prove its credibility as a steward to the Financial Conduct Authority, the Premier League, and England’s Football Association.
These bodies have expressed dissatisfaction with 777 Partners' financial statements, specifically noting the lack of audited records for a holding company with diverse international soccer teams and investments. Additionally, they require disclosure of the source of funding for the acquisition - concerns that mirror those raised by Belgian soccer authorities during Standard Liège's licensing process.
Concerns about 777 Partners' own viability have been amplified due to missed routine payments to businesses, partners, brokers involved in soccer deals, and instances of missed payroll. Reports of unpaid bonus payments further exacerbate these concerns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.