Everton takeover: 777 Partners twist emerges amid £20.89bn reveal
Potential new Everton owners 777 Partners are in talks with New York-based private investors Blue Owl Capital Inc., according to Bloomberg on 12 April.
Reliable Toffees finance news-related journalist The Esk claims that the American company is valued at $26billion (£20.89billion).
The 777 takeover is currently in jeopardy due to their lack of capital and thus they have turned to potential funders.
Are Blue Owl the potential saviours for Everton and 777 Partners?
Blue Owl Capital Inc., with their significant financial power, have the potential to play a crucial role in resolving the club’s financial challenges.
As a private markets investor with an average deal size of $65million (£52.2million) and a weighted average length of loan at five years, Blue Owl focus on investment-grade and creditworthy companies.
Their average spread over base rates stands at 6.1%, with over 90% of their investments in investment-grade or better companies.
This financial strength positions Blue Owl as a potential saviour for the Toffees, considering the club’s current financial predicament.
Everton face complex financial challenges
The Merseyside outfit face a complex and precarious financial situation, largely due to the ambitious project of building a new stadium in Bramley Moore Dock and the high-profile signings under Farhad Moshiri.
The club have accumulated significant debt as a result of these endeavours and a timely and substantial financial injection is crucial for their survival.
777 Partners, the prospective new owners of the Toffees, have been in talks with Blue Owl Capital to arrange a £360million loan tied to the club’s new stadium.
This loan would be instrumental in repaying a £158million loan to MSP Sports Capital, a rival sports investor.
If the loan is not repaid, MSP could potentially take ownership of the Toffees.
Blue Owl may be key for the short-term future of Everton
The involvement of Blue Owl Capital in financing Everton’s new stadium could not only help 777 Partners complete the takeover but also provide the club with the financial stability it desperately needs.
The financial resources and expertise of Blue Owl could be instrumental in ensuring Everton’s short-term future, both in terms of its on-field performance and the completion of the ambitious stadium project.
However, the success of these negotiations is yet to be determined.
Despite the potential benefits, a deal with Blue Owl is currently seen as unlikely, and discussions could end without an agreement.
Nevertheless, the mere possibility of Blue Owl’s involvement underscores the critical role that private capital can play in the financial health of clubs like Everton.
In other Everton news, a senior player may never start for the club again after the Chelsea loss and is now very likely to leave in June.
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