777 Partners used £1.2bn of customers’ money to secure purchases amid Everton takeover news
New details in financial documents have shown that prospective Everton owners 777 Partners have used £1.2billion of customers’ money to purchase sports teams, according to Semafor.
The USA-based financial news outlet shared on 15 November that 777 had used policyholders’ money via an insurance company it controls to purchase European football teams and other investments.
It was also reported that the money has also been used to invest in a South American streamer, launch a payday lender and a budget Canadian airline, and make dozens of other riskier bets.
Concerns emerging yet again
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.
More information has come to light in the last week after it was shared that 777 are bankrolled by a Bermuda-based insurance firm which invests 65% of its wealth in risky investments in private-equity funds and asset-backed securities.
This news all emerged following the decision by major credit rating agency AM Best to downgrade 777’s rating based on the instability and risk behind their income, which is thought to be a potential risk to their ability to invest in their growing sports empire.
With billions of pounds of customers’ money used to further their own ambitions via risky investment opportunities will surely see concerns rise again as the source of the funding continues to be a sticking point during talks and checks surrounding the prospective takeover deal.
In other Everton news, a journalist has predicted a £25million+ ace to snub a move to Goodison.