Everton ‘virtually insolvent’ as multi-million cashflow covered for just one month
Everton are “virtually insolvent” despite the news that 777 Partners are providing the club with a multi-million loan, according to the Daily Mail.
The newspaper reported on its website on Tuesday (19 September) that the cashflow being provided by the US investment firm will only cover one month.
It questioned how 777 Partners will be financing the loan given that there have been questions raised around its finances, with the group agreeing a deal to take over the Toffees from Farhad Moshiri.
“Where 777 will find the money for a job of Everton’s proportions is anyone’s guess,” said the newspaper. “There was a brief hullabaloo on Tuesday after they let it be known that they had provided Everton a £20million loan.
“As respected Everton podcaster and writer ‘The Esk’ observed, that will cover a month’s cashflow for a club which is virtually insolvent.”
Who knows
There are an awful lot of questions being raised at this moment in time around how 777 Partners are going to finance a deal for Everton.
On top of that, the latest development about the loan is likely to raise more suspicion, with many people sceptical about the group’s intentions.
Although the debt has now been paid, the company missed a payment date for £860,000 owed to the British Basketball League earlier this summer.
It makes you question how anyone who couldn’t pay that lowly sum in sporting terms just a few months ago can now hand out £20million and complete a takeover of a Premier League club.
It’s going to be a long process before a deal is pushed over the line, but the latest development just shows what state the Toffees’ finances are in and how the club’s future could be under threat.
In other Everton news, a football finance expert has made an admission about 777 Partners.