Everton may now face cash-flow issues after Premier League concession on 777 Partners
Everton could face cash-flow issues before the end of the season as the Premier League have conceded that due diligence on the 777 Partners’ takeover could take months, according to the Daily Mail.
The newspaper reported on its website on Wednesday (20 September) that the American investment companies’ potential takeover could take months to approve after an agreement was reached in principle between Farhad Moshiri and the potential new owners.
777 Partners have already afforded the Toffees a sizeable loan, believed to be in the tens of millions of pounds to assist Everton with their working capital and construction of the Bramley-Moore Dock stadium [The Athletic, 18 September], while they wait for approval to acquire Moshiri’s 94.1 per cent stake.
Explaining the Premier League’s stance on the deal, Matt Hughes wrote: “The Premier League have privately conceded that completing due diligence on the takeover could take months, which may leave Everton facing cash-flow issues before the end of the season.”
Problems
Everton need investment quickly as currently they are circling the plughole of financial disaster under Moshiri’s ownership. The current man in charge at Goodison Park is reluctant to invest his capital into a side that he is hoping he won’t be the owner of sooner rather than later.
While the Premier League do have to take their time to do their due diligence to decide whether or not 777 are fit and proper owners for the Toffees, it could take time that quite honestly Everton don’t have to make that decision.
The initial loan provided by the American investment firm will be some help for now, but tens of millions of pounds doesn’t stretch very far in football these days and with construction continuing on the new stadium, the running costs at Everton are very high currently.
With 777 owning 60 companies it will take time for the Premier League to establish the origin of the money that is being used to complete the purchase of the Blues and that will delay the takeover. If cash-flow issues do arise it could mean trouble both on and off of the pitch.
Sean Dyche’s side have started the season in poor form and are already facing a potential points deduction. Should the financial situation become even more dire, it won’t be long before talk of further punishment or administration starts up again.
In other Everton news, the Toffees have received a huge response to their new stadium proposals despite news of the takeover