Everton takeover could hit rocks as 777 Partners-owned Genoa faces bankruptcy
777 Partners’ takeover of Everton could face further scrutiny as Genoa, another club in the group’s portfolio, faces bankruptcy, according to Josimar Football.
The football finance outlet shared on 22 November that, unless the Court of Genoa agrees to a restructuring of the club’s debts to the Italian tax authorities, there could be serious problems.
It is also reported that the court will only endorse the agreement if it is fully satisfied that 777 is financially solid enough to honour the agreement – something which has also been a sticking point over the Everton takeover.
If the Court of Genoa is not satisfied with 777’s financial stability, or ability to pay off the debts after they are restructured, it is difficult to imagine that the regulators assessing their takeover at Goodison Park would think any differently, given their commitments to paying off Everton’s debt.
On top of the ongoing appeal to restructure the debt, it has also emerged that 777 still owes around £140million to other creditors of the club.
777 purchases clubs for low and modest prices compared to their estimated value, with their aim to pay off the debts the club owes. This model would make sense if the clubs concerned could then be sure of turning a profit in the near future.
However, none of the assets in 777’s collection of clubs has shown signs of making the progress needed for that, despite a reduction in operational costs. The debt burden remains, with punishing interest rates making it even more difficult to balance the accounts; and this debt burden, in Genoa CFC’s case, is colossal, according to Josimar.
This situation, when related to Everton, could be worrying for their takeover prospects. If they continue to show no signs of helping their other clubs turn a profit in aid for sorting out the existing debts, what hope would there be for that to take place at Everton?
All eyes will be on the Court of Genoa, with their case likely to have a direct impact, or at least provide a key insight, into the ongoing process by the Premier League and regulatory panel.
It is expected that the case will be resolved in January 2024.
In other Everton news, Gabby Agbonlahor claimed there is good news amid the points deduction.