Kieran Maguire offers Everton takeover verdict as 777 Partners loan offers security while deal is struck
Football finance expert Kieran Maguire has suggested that 777 Partners will be looking to strike a deal with Everton to borrow against future broadcast revenue, with their initial loan offering security.
The American investment company agreed to a deal in principle to acquire Farhad Moshiri’s 94.1 per cent stake in the Toffees (15 September) awaiting approval from the Premier League, but in the meantime, the Blues have received a sizeable loan from their potential new owners [The Athletic, 18 September].
Despite there being increased rules to restrict anyone from investing in football clubs via loans, given the potential harm interest rates and debt can cause, Maguire has suggested that 777 Partners may well use their loan as a makeweight when negotiating a deal to buy the Toffees.
Speaking on The Price of Football (25 September) he said: “Anybody and their brother or sister could have lent money to a football club until a few years ago when the rules were changed in relation to borrowing secured on future broadcast revenue.
“By the sound of it, it looks as though 777 will be looking to strike some form of deal with regards to borrowing secured on future broadcast revenue. That is a rule which was introduced by the Premier League probably about eight or nine years ago, so that has been introduced to try to give a little bit more security.
“But, you can still have other loans either secured on different assets such as transfers or unsecured loans.”
Security
Hopefully, given the new structure of the loans given to Everton this season, there should be an element of safety and security that should stop the Toffees from ending up in a worse financial state than they were before taking out the loan, as has been the experience of other football clubs.
The Blues get their broadcast revenue paid to them in two parts by the Premier League and according to Maguire and as previously speculated by Simon Jordan [talkSport, 19 September] the money lent to Everton by their new owners will be leveraged against that incoming cash.
Everton are guaranteed to receive that fee while they’re in the Premier League and that is at least secure until next May. Given the Toffees’ much-improved performance against Brentford, there is slightly more confidence that Sean Dyche’s side will continue in the top flight next season.
So often when you hear about loans in football, the natural thought process is to remember the clubs that have suffered as a result of the decision to find outside investment, such as Bolton Wanderers of currently West Brom. But the nature of 777’s loan, alongside their willingness to takeover the Toffees should ensure this deal had a bit more security than your average loan.
In other Everton news, the Toffees supposed weakness from set-pieces was nowhere to be seen against Brentford