Advisers to Everton, one of English football’s oldest teams and a founding member of the Premier League, have begun looking for an alternative buyer for the financially troubled club, according to people familiar with the matter.
everton Announced in September It has signed an agreement to sell the club to US investment company 777 Partners.But seven months later, the Premier League has still not approved the deal Questions about 777’s financial situation.
Meanwhile, the club continues to struggle on and off the field. Everton have been docked two points this season for failing to comply with the Premier League’s financial rules, leaving them in danger of being relegated from English football’s top flight for the first time since 1951.
Perhaps more worrying is the financial health of the 146-year-old club. Everton has borrowed about 160 million pounds (nearly $200 million) from private investment firm 777 Partners, a cash infusion it hopes will help the team avoid bankruptcy.
But accounting firm Deloitte has secured the services of Everton’s embattled British-Iranian boss Farhad Mohamed, according to people familiar with the matter, as 777 Partners’ financial problems mount and the company faces legal troubles in the United States. Farhad Moshiri’s authorization to engage in dialogue with other potential buyers. With the move.
A spokesman for Moshiri said the agreement with the 777 “remains in effect” and they will continue to work toward completion.
But as concerns grow about the club’s perilous condition, Deloitte has contacted other potential saviors, including the sovereign wealth funds of several Middle Eastern countries, including Qatar. The Premier League already has team owners from Saudi Arabia and the United Arab Emirates.
Last month, Mr. Moshiri Everton fans reassure fans in letter The deal has finally entered the “direct” stage. Josh Wander, principal at 777 Partners, attempted to do the same, writing that he and his firm remain committed to working with backers “Once we become owners of Everton Football Club“.
However, Everton’s immediate future remains bleak until the sale is completed. The new $900 million stadium is not yet complete and any new owners will need to find the funds to complete the work. The team ranks 16th in the 20-team Premier League. But as its losses continue to exceed the cost control rules set by the Premier League, it faces the risk of further points deductions. Teams may also be deducted points if they become insolvent.
The lack of progress on Everton’s sale has widened scrutiny of 777 Partners, which also owns football teams in Brazil, Belgium and Germany. At various times, the company has struggled to meet the clubs’ spending requirements, frustrating team officials and worrying football regulators.
Beyond football, the company also faces A series of lawsuits and a liquidity crisis. Recently, one of its biggest financiers, a New York-based insurance company, said it would reduce its exposure to the company.
