Everton require further 777 Partners loans after £20m cash boost as administration threat looms
Everton will likely need further loans from 777 Partners to keep the club afloat, with the £20million loan received last week not enough to cover their losses or stave off the threat of administration, according to the Daily Mail.
The newspaper reported via their website on Saturday (23 September) that sources close to the club believe the loan won’t be enough to cover losses, and the costs going towards the Bramley-Moore Dock Stadium mean further funding will be needed.
Current owner Farhad Moshiri has stopped putting funds into the club, with debts of over £400million weighing them down, and lenders MSP Sports Captial and Rights & Media Funding Limited expect their £300million combined to be repaid if the 777 deal goes through.
A desperate situation
While the deal between 777 Partners and Farhad Moshiri for the purchase of his 94.1% stake in the club has been agreed, the takeover will take time to go through as it still needs to pass tests from the relevant authorities.
That means, for now, that 777 will have to make investments into the club in the form of loans, which could become costly in their efforts to avoid falling into administration and would be particularly impactful should the takeover not be approved as it would add to the club’s debt.
The Daily Mail reports that Everton were contacted for comment on this development, and are believed to be confident that funds can be secured on an ongoing basis until the takeover is completed.
Everton have lost around £430million over a five-year period, and the loan repayments currently affecting the club are only making matters worse.
A decision on the ownership situation is unlikely to be made until the new year, meaning the short-term financial position of the club remains unstable, and more cash injections will be needed to keep them afloat.
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