Emmanuel OchayiAmerican investment fund 777 Partners has secured a conditional agreement to purchase British football club Everton, effectively ending the era of British-Iranian businessman Farhad Moshiri’s tumultuous reign.
The undisclosed sum deal promises significant changes for the club, including financial stability and the assurance of full funding for the much-anticipated Bramley-Moore Dock Stadium in Liverpool.
Join our WhatsApp ChannelSpeaking about the acquisition, an official statement from 777 Partners remarked, “We are excited about this investment and its potential to revitalize Everton. Our commitment to strengthening the club’s financial foundation and delivering on the new stadium project is unwavering.” Both parties anticipate finalizing the deal by the end of the year.
Farhad Moshiri, who has invested approximately £750 million in Everton during his tenure, is expected to recover only a fraction of his substantial investment. Football Benchmark, a consultancy, estimated the club’s enterprise value to be around £470 million earlier this year.
Moshiri’s quest for an investor has been protracted, with Everton’s financial woes exacerbating the urgency. The pressing need to raise hundreds of millions for the new stadium ultimately led to the agreement with 777 Partners, after exclusive talks with US group MSP Sports Capital for an equity stake fell through.
However, the deal’s journey is far from over, as it must secure approval from the Premier League, which has recently strengthened its scrutiny of prospective owners and directors. Additionally, the Football Association and the UK’s Financial Conduct Authority will also be closely examining the deal.
777 Partners already boasts investments in seven football clubs, from minority shares to full ownership, including Hertha Berlin in Germany, Sevilla FC in Spain, Genoa in Italy, and Vasco da Gama in Brazil.
This acquisition comes amid questions raised by investigative news outlet Josimar in July regarding past legal issues associated with 777 Partners and its co-founder Josh Wander.
Wander dismissed these concerns, emphasizing that a “new wave of commercialization” is approaching football that justifies their diverse range of investments.
Moshiri’s tenure at Everton has been marred by financial troubles and on-field struggles, with the threat of relegation casting a shadow over the club’s future viability.
In his statement, Moshiri lamented the increasing difficulty for individual investors to compete with wealthy rivals, such as Saudi Arabia’s sovereign wealth fund and the US consortium that recently acquired Chelsea.
Notably, Moshiri’s search for new investors gained momentum after Everton severed ties with companies linked to oligarch Alisher Usmanov, who faced sanctions following Russia’s invasion of Ukraine. These companies held sponsorship deals and naming rights for Everton’s new stadium.
Currently, Everton languishes in 18th place in the Premier League, facing a Premier League investigation for alleged financial regulation breaches. The club reported a net loss of £44 million for the year ending June 2022, following a net loss of £120 million in the previous financial year and substantial losses in the years prior.
As the deal progresses, the football world watches with bated breath, wondering if this new American investment will be the catalyst for Everton’s resurgence in both financial stability and on-field success.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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