Everton: New 777 stadium funding route emerges amid ‘draconian’ Premier League takeover hurdles
777 Partners may have a new “avenue to funding” for the new Everton stadium development, according to Josimar.
The outlet reported via their website on 23 March that after the American company’s attempt to raise capital via brokers Tifosy last year was “unsuccessful”, with a spokesperson claiming it had been put on hold and would only be restarted if they received Premier League approval for the deal, it was in doubt that 777 can provide the funding to meet “draconian” requirements set out in a letter from the league.
Sources close to the company have reportedly floated the possibility that a Blue Owl Capital, an “alternative investment asset management company” which claims to manage over $165billion [£131bn] in assets, could be a way for 777 to gain access to capital.
But Josimar reports that any involvement from Blue Owl will only relate to funding the Bramley Moore Dock project and would not be involved in the takeover transaction itself.
One of four Premier League requirements for Everton deal covered?
Providing proof of funds to cover the rest of the stadium build is one of the four key points that the league wants satisfied to grant approval, so if 777 have found a way to get hold of money to ensure that it would therefore go some way to getting their bid over the line.
The most pressing requirement detailed in the letter received from the Premier League this week is the repayment of a £158million loan to MSP Sports Capital for the dockside construction, so it is unclear whether that might possibly also be ticked off if a Blue Owl arrangement can be reached.
That loan must be repaid by the middle of next month for the takeover to go ahead so if this is a viable route to 777 getting their hands on the required funding then they will need to get it in place as a matter of priority.
However, in addition to stadium funding and the MSP loan repayment, the league also requires money for the club’s running costs to the end of the season to be put into an escrow account, and the loans Josh Wander and company have already provided, worth at least £150m but reported to be as high as nearly £200m, to be converted into equity.
And since that money came to 777 as loans in the first place it may require the firm to pay them off with interest, further increasing the cost of the takeover even before any cash goes to Farhad Moshiri for the sale itself.
So it is still going to be an expensive matter even if the stadium elements were to covered in conjunction with Blue Owl.
And if Miami-based 777 have been unable to satisfy the Premier League up until now it is perhaps still doubtful they can get everything they need in place within the next few weeks.
In other Everton news, the Premier League has made a commitment for the club’s upcoming independent commission hearing in a bid to avoid a “nightmare scenario”.
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