Everton Football Club finds itself at a crossroads as the deadline for the sale of the club to the US-based consortium 777 Partners expired without resolution.
The consortium had agreed to purchase majority owner Farhad Moshiri’s 94% stake in the club in September 2023, but has failed to finalize the deal within the allotted time frame.
The club announced that it would “assess all options for future ownership” following the missed deadline. Despite this uncertainty, Everton assured fans and stakeholders that they would “continue to operate as usual” as they explore their ownership options.
Everton’s current predicament can be traced back to the tenure of Farhad Moshiri, who took a controlling stake in the club in 2016.
Initially, Moshiri’s arrival was met with optimism, but his tenure has been marred by a series of poor performances both on and off the pitch.
From 2019 to 2023, Everton posted losses nearing £400 million, leading to severe financial strain. This financial turmoil resulted in the club being docked a total of eight points for two separate breaches of the Premier League’s Profit and Sustainability Rules (PSR).
These challenges have fueled fan discontent and increased scrutiny of Moshiri’s leadership.
In September 2023, Moshiri reached an agreement with 777 Partners, a Miami-based investment firm, to sell his majority stake.
The firm aimed to complete the takeover by the end of 2023, but encountered numerous delays. Key among these was their failure to meet the Premier League’s stringent ownership conditions.
The Stumbling Blocks
777 Partners faced several hurdles in their bid to acquire Everton. Initially, they were granted an extension in February 2024 to finalize the purchase.
However, the Premier League required them to demonstrate proof of funds and convert their £200 million loan to Everton into equity. Additionally, they needed to show that they could settle a £158 million loan owed to MSP Sports Capital.
As the deadline approached, it became evident that 777 Partners were struggling to meet these conditions.
In early May, the firm appointed finance restructuring experts to help manage costs, casting further doubt on their financial stability. This move intensified pressure on the Premier League to potentially reject the takeover.
Despite the growing uncertainty, Premier League chief executive Richard Masters emphasized that the league’s role was merely regulatory.
“The Premier League’s role in this, as regulator, is to perform the [owners’ and directors’] test. It is not to decide who the current owner wants to sell his club to. That is his decision,” Masters stated, underscoring that the final decision rested with Moshiri.
What Next for Everton?
With the deadline passed and the future ownership of the club in limbo, Everton faces a period of uncertainty.
The club’s management has pledged to explore all available options for future ownership, but the path forward is unclear.
For now, Everton must navigate this turbulent period while ensuring that day-to-day operations continue smoothly.
The coming months will be crucial as Everton seeks a stable and financially sound owner who can steer the club back to success both on and off the field.
