March 13 – Everton’s sale to 777 Partners looks to be in the balance after the Premier League called in the prospective buyers for an in-person meeting with the Premier League which is looking for answers around questions related to the source of funding from 777.
The Miami-based investor has built a club ownership portfolio including Serie A’s Genoa, Hertha Berlin in the Bundesliga and Vasco da Gama in Brazil. Those acquisitions were funded by 777 Re, a Bermuda-based reinsurer, but doubts exist over whether there is enough finance to support the Everton acquisition.
777 Partners have agreed to purchase Farhad Moshiri’s majority shareholding in Everton back in September for a deal reportedly worth £550 million. 777 co-founder Josh Wander was seen at the Toffees’ match against West Ham United at Goodison Park on March 2 before being called in for the meeting with the Premier League.
Last week, investment firm Obra Capital filed a complaint against 777 in the Supreme Court of New York, concerning a $55 million sum linked to collateral offered by 777 to secure a loan in 2020.
Obra Capital, partially owned by RedBird Capital Partners (holding 11% of Liverpool owners Fenway Sports Group), claims that 777 extended the loan three times before Obra called in the debt.
The legal dispute intensified as Obra alleges that 777 transferred two “cash-rich” subsidiaries, Sutton Specialty Insurance Company and Sutton National Insurance Company, to 777 co-owner Steven Pasko for no compensation, asserting that this move was made to “shield those assets from creditors.”
Obra is now seeking the owed money, interest, legal fees, and punitive damages.
Everton is mentioned in the filing due to the increased pressure faced by 777 following its bid to acquire the club, with the documents suggesting that “777’s house of cards began crumbling down” under heightened scrutiny.
Furthermore, the filing contends that despite 777’s assurance of being adequately capitalised, it failed to make required payments under the third extended loan agreement in 2022, leading Obra to seek reimbursement through collateral against the loan.
The legal document also enumerates several other ongoing legal cases regarding alleged unpaid debts, amounting to approximately $47 million.
Contact the writer of this story, Harry Ewing, at moc.l1713958620labto1713958620ofdlr1713958620owedi1713958620sni@g1713958620niwe.1713958620yrrah1713958620