Everton takeover: 777 likely to fail in last-gasp talks to secure loan against new stadium
777 Partners are not likely to secure the loan they are seeking from Blue Owl Capital Ltd. to complete their takeover of Everton, according to Bloomberg.
The outlet reported on their website on 12 April that people familiar with the last-gasp talks over a £360million injection of funding tied to the new stadium don’t expect a deal to happen and discussions could end without an agreement.
Blue Owl are considered a “giant” in the world private credit, but have reportedly never made a loan secured against a sports stadium.
The American firm is looking to get hold of the money before the repayment deadline for £158m in loans towards the project from MSP Sports Capital, Monday 15 April.
It is one of four key criteria set out to 777 by the Premier League to gain approval for the Toffees takeover, and the original terms of the loan would allow MSP to gain majority control of the club from Farhad Moshiri if the loan is not repaid on time.
777 are understood to have requested an extension to the deadline already but it is not know what response they received, although that too is seen as an unlikely outcome.
MSP Sports Capital could end up in control of Everton
It has the air of a desperate late swing to try to get in hundreds of millions in new debt just days before a key takeover deadline when the process has gone on for a full 30 weeks already.
And from the point of view of the club it doesn’t sound like a particularly desirable outcome for a massive loan secured against a stadium they’ve never even played in yet, not least given 777’s recent history of legal disputes with creditors.
Plenty of Toffees fans fear the club losing control of the Bramley Moore dock ground and becoming tenants in their new home, and this potential loan would make many feel all the more nervous.
However, the concerns over the club’s direction and future more generally if 777 don’t get this money are also considerable.
There are believed to be alternative bidders but in light of Moshiri’s unwillingness to engage them despite the stasis over the current bid stretching on for months it is raised major worries in some quarters that administration may now be unavoidable.
777 have pumped in tens of millions in loans for running costs over recent months, with money sourced from yet another lender, and if that funding dries up it is unclear what would replace it.
In other Everton news, Richard Masters has been told to resign after a “damning” reveal from the commission documents.
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