Everton takeover may be ‘very risky’ final 777 gamble as new £3billion debt figure emerges
The Everton takeover has been mooted to be the “last throw of the dice” for 777 Partners after it emerged they were in an “unusual” amount of debt prior to deal being struck, according to Josimar.
The Norwegian outlet reported via their website on 5 March that last summer the American firm owed a total of $3.6billion [£2.995billion] to creditors just weeks before an agreement was reached to buy out Farhad Moshiri at Goodison Park.
It is said that such numbers might be fine in “exceptional circumstances” but the scale of the debt is “way more than had been thought previously” and the company’s struggles to service it “raises fresh concerns about the finances of the US group”.
Josimar report that as of last summer 777 had overdue repayments totalling $147.2m [£117m], and while it is noted as possible the balance could have been redressed in the months since then the fact that their insurance arm has twice had its credit rating downgraded that is considered unlikely.
So with the ongoing wait for a Premier League verdict on the takeover having led to nearly £200m in loans for the club’s running costs the situation has been branded a “very risky enterprise” which could either be read as “a demonstration of confidence, courage and determination, or the last throw of the dice of a gambler who’s lost at almost every table he’s sat at before”.
777 Partners still wait for Premier League answer on Everton takeover
If a company is in such huge amounts of debt and seemingly in an increasingly difficult position to pay enough back the logical assumption might be that the Premier League would deny they are suitable club owners.
So why it has taken nearly six months and that conclusion still hasn’t been reached suggests some other factor must be in effect here, although whether that is on the league’s side or 777’s is a mystery.
With the funds to prop up the Toffees as the months tick by said to itself be loaned to 777 by Kenneth King it certainly gives the appearance of a very precarious situation for the prospective new club owners.
But that continues to beg the question as to why Richard Masters and his office haven’t simply come back with a negative answer and broken the current deadlock.
Face-to-face talks between the league authorities and Josh Wander are supposed to be imminent, which should surely provide a breakthrough of some sort one way or another if they actually go ahead.
But the financial picture that has been painted makes it look like 777 need the deal to go through as much, if not more, than Everton need new ownership.
In other Everton news, alternative bidders are now lining up as the wait for a takeover verdict continues.
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