777 Partners’ Everton takeover threatened by £300m lawsuit from rival clubs
Everton’s takeover by 777 Partners could be under threat due to a looming £300million lawsuit from three rival clubs.
Everton owner Farhad Moshiri agreed a deal last month to sell the club to the American investors. But the deal still has to be approved by the Premier League, which is also set to decide on whether Everton have breached financial fair play rules at an independent tribunal on October 25.
The Toffees were charged by the Premier League in March with an alleged breach of financial fair play rules after posting losses of £313.5million over the past three years – well in excess of the £105m limit. The club has denied any wrongdoing, but if they are found guilty it could scupper their pending takeover, with Burnley, Leeds and Leicester reportedly planning to sue Everton.
The Daily Mail reports that the three sides have written a joint letter to 777 Partners asking them if they are aware of their plans to sue Everton. Leeds and Leicester were relegated last season, and Burnley the year before, and they all believe the delay in a potential points deduction for one of their main rivals for the drop played a key role.
Southampton and Nottingham Forest also raised concerns to the Premier League around the matter towards the end of the 2022/23 campaign, but have now withdrawn their complaints. Instead it is Burnley, Leeds and Leicester who have reportedly written to the Premier League and 777 to escalate the matter and would claim £100m each in compensation from the Toffees.
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In their most recent accounts, Everton attributed £90.4m in losses to the Covid-19 pandemic. However, even without considering Covid-19, their losses still stand at £223.1m over the past three years – over double the Premier League’s permitted limit.
After being charged with breaches in March, Everton said in a statement: “The club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations.
Farhad Moshiri is keen to sell his majority stake in Everton to 777 Partners (Getty Images)“Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times.”
777 Partners have already loaned Everton around £20m and have Moshiri’s blessing, but will have to wait to see if their takeover is given the green light by the Premier League. The Miami-based company could be put off by the prospect of a lengthy legal battle with rival clubs.
Moshiri, who owns 94 per cent of the club, has been open about his desire to sell after pouring around £750m into the struggling side over the last seven years. Everton, who are 16th in the Premier League following their 2-1 home defeat by Luton on Saturday, still need to find £300m in funding for their new stadium at Bramley-Moore Dock.
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