Everton have received a sizeable loan from prospective new owners 777 Partners.
It was announced last week that the American investment firm has an agreement to buy the club from Farhad Moshiri, subject to an approvals process.
Details of the financing have not been disclosed but amid Everton’s perilous financial situation — influenced by the mounting construction costs for their Bramley-Moore Dock stadium — it can be revealed that 777 has already made a payment worth tens of millions.
Premier League rules prevent the company from investing directly into Everton via an equity injection, unless and until the deal it has in place with Moshiri is granted a green light.
Given Everton’s pressing need for immediate funding, 777 has lent them money on an interim basis to help with short-term working capital requirements and the stadium build.
The U.S.-based vehicle intends to maintain a continuous dialogue with Everton while waiting to learn if its acquisition will be allowed to proceed.
This is likely to involve 777 providing some expertise from its multi-club model to Everton and occupying an observer role on the board of directors.
On behalf of 777, Everton have communicated to their fan advisory board and shareholders association that the prospective new owners will meet and engage with them and the wider fanbase.
Josh Wander, a managing partner of 777, would have attended Sunday’s loss against Arsenal at Goodison Park if he had not been observing Rosh Hashanah, the Jewish new year festival.
Wander and his colleagues are said to be satisfied with the work of Everton manager Sean Dyche and director of football Kevin Thelwell, especially during the most recent transfer window, and plan to retain them should the takeover go through.
While Moshiri accepted 777’s offer, it must still be assessed by the Premier League, Football Association and Financial Conduct Authority.
It would see 777 take Moshiri’s full stake, which accounts for 94.1 per cent of Everton.
The group also has shareholdings in Genoa, Vasco da Gama, Hertha BSC, Standard Liege, Red Star FC, Sevilla and Melbourne Victory.
Everton are 18th in the English top flight and have not won any of their five league matches so far this season. They face a trip to Brentford next Saturday.
Everton, Farhad Moshiri, 777 Partners and a ‘takeover’ that poses more questions than answers
Is this good news for Everton?
Analysis by senior football news reporter Matt Slater
Everton fans may disagree but there is something the club needs more than points right now: cash. So, news that some has arrived should be positive, right?
Well, yes and no.
Despite another transfer window that has seen more money come in than go out — with savings to the wage bill, too — Everton still require cash top-ups every month.
Since 2016, the source of those top-ups has usually been the Bank of Farhad Moshiri but the computer has been saying “no” at that establishment for several months now.
Last week, we learned that the Anglo-Iranian businessman has agreed to sell the club to Miami-based investment firm 777 Partners. This deal, however, is subject to regulatory approval which may take some time.
And time is money, as in cash that Everton will continue to burn through on everyday football costs as well as the spectacular stadium Moshiri has started paying for but also now hands over to a new benefactor to complete.
So, yes, it is good news that 777 is willing to take on these twin responsibilities before it has even been confirmed as the new custodian.
But when you are looking at a business that has lost at least £430million ($532m) since 2018 and still has more than £200m to find for its posh new home, you have to ask how long tens of millions is going to last and what happens when it’s gone?
(Photo: Michael Regan/Getty Images)