Secret behind 777 Partners Everton takeover shared with funding revelation
777 Partners’ secret behind their financial strength comes from risky investments in private-equity funds and asset-backed securities as concerns emerge around the Everton takeover, according to Semafor.
The financial news outlet shared on 15 November that the Bermuda-based insurance firm which is a large part of bankrolling 777 invests 65% of its wealth in these risky deals, compared to 12% from traditional insurers.
This report has emerged after a major credit rating agency AM Best downgraded 777’s rating, threatening the group’s ability to continue to fund its growing global sports empire.
More details are beginning to emerge
It was initially reported by the New York Times [18 October] that the UK’s Financial Conduct Authority had raised concerns surrounding a lack of audited financial reports, and questions have lingered about their funding since takeover talks began.
It has never been entirely clear where the group get their large sums of money, leading to questions over whether they can afford to buy and maintain a club in Everton’s situation, but more information is beginning to come to light.
Given the risky nature of the company that bankrolls the group’s financial might, it may be considered too volatile of an income stream to enable them to purchase a football club with debts the size of Everton’s.
AM Best claimed it was troubled by governance and risk-management practices in investments which 777 has now promised to sell, but the concerns being raised in the first place are a major cause for concern, regardless of the retrospective action taken in an attempt to claw back their rating.
In other Everton news, the club’s stance on a new deal for Richarlison has been made clear.