Everton investment ‘caution’ urged by Kieran Maguire over ‘vampire lenders’ 777 Partners amid Melbourne Victory development
Kieran Maguire has urged “caution” when dealing with potential Everton investors 777 Partners, who he has referred to as a “vampire lender” with regards to their involvement in Melbourne Victory.
The football finance expert from the University of Liverpool said on The Price of Football podcast (11 September) that the American company had got themselves in a position where they could “effectively dictate terms” to the stricken Australian club, while pointing out 777 are also trying to get in at Goodison Park.
Sky Sports’ Alan Myers indicated on 7 September that the company were currently the “firm favourites” to replace the collapsed MSP Sports Capital deal on Merseyside, despite a “real and credible” option from Asia who are shunning publicity.
Maguire said of the situation in Australia (16.15): “Yes I think this is a good deal potentially for 777, and for any Everton fans 777 are potentially trying to have some form of relationship with Everton [too].
“I would urge caution in dealing with 777. They do appear to have quite a lot of money. They initially put, I think, $80million AUS into Melbourne Victory…
“They do own stakes in quite a few other clubs. They are convinced that football clubs, and I think this is a common trait of American investors, are very, very poor at marketing…
“If you take a look at Melbourne’s latest accounts not only were they losing money but there was a material uncertainty in their ability to carry on trading, a significant chance that they were going to go bust. This is where 777 came in.
“I would describe them as a vampire lender in these scenarios where they’re effectively able to dictate terms. If its going to be $30m AUS at 10% compound interest for two or three years that’s going to be an awful lot of money that Melbourne Victory are going to need to find.”
Concern?
Perhaps it proves to be irrelevant to Everton because Farhad Moshiri ends up going with a different option, or perhaps 777 do manage to secure involvement in the Toffees and everything works out fine.
But this sort of verdict from a figure like Maguire won’t do much to dispel potential concerns among the fans, especially when there isn’t much at the club that has actually been fine in recent seasons.
Some of the language used regarding the situation at Melbourne victory is familiar when it comes to the more dire verdicts issued on Everton and potential relegation in recent months.
Very few investors get involved in any business, let alone a struggling one, without expecting to profit out of it, but the viability of what a company might expect and the timescale the expect it in can vary hugely.
Everton appear to badly need something long-term and sustainable, with new voices in the boardroom whose goal is to improve the standing of the club on and off the pitch.
Whether that is what is currently on the cards isn’t easy to discern, but Moshiri obviously has to be very careful to ensure he doesn’t end up agreeing a deal with any party who are going to leave the Toffees worse off.
In other Everton news, a Premier League player has opened up after snubbing an offer from Goodison Park this summer.