Everton close to takeover deal with US firm facing allegations of fraud
Everton are set to be sold to Miami-based investment firm 777 Partners with a deal for a takeover close to completion.
The Toffees resumed discussions with the firm earlier this summer after discussions with MSP Sports Capital collapsed in August. Current owner Farhad Moshiri has been seeking investment into the Merseyside club for some time and whilst a deal is not yet complete, it does not look to be too far away.
Any completed deal will bring to an end the contentious reign of Moshiri at Goodison Park since he first invested into the club in 2016. The British-Iranian businessman has invested more than £750m into Everton since then but things haven’t always been plain sailing.
The Toffees have suffered a dramatic fall down the Premier League table and have narrowly escaped relegation in each of the past two seasons, with fans staging a series of protests against the board. Everton also posted financial losses for the fifth consecutive year in March, taking their cumulative losses over the past five years under Moshiri to £430m.
Those losses have seen the club accused of a breach of the Premier League’s financial fair play rules and they are set to go in front of an independent commission. Moshiri previously insisted he was looking for investment and was not thinking of selling the club.
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He said: “The club is not for sale, but I have been talking to top investors, really quality, to bridge a gap on the stadium. I can do it myself and the reason I want to do it is to bring top sport investors to Everton. We are close to having a deal done.”
Everton are winless in the Premier League so far this season (Offside via Getty Images)
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However, Moshiri appears to have performed a U-turn on relinquishing control of the club. According to BBC Sport, a deal with 777 is edging towards completion. Whilst the news of his exit will be welcomed, there are concerns over the US company with a potential government hurdle presenting a problem for a takeover.
Whitehall officials have discussed 777’s suitability for ownership of a Premier League club, while there have been suggestions that managing partner Josh Wander might not pass the stringent owners’ and directors’ test. 777 already have stakes in a number of European clubs including Sevilla, Genoa and Hertha Berlin.
The firm and sister company SuttonPark have been accused of a number of instances of fraud, offering illegal loans and failing to pay bills totalling hundreds of thousands of dollars. The UK government lack the power to veto any potential takeover until a proposed new independent regulator is appointed but will raise the issue with the Premier League once a deal is agreed.
Staff at UK Sport, the body responsible for funding Olympic sports, have also expressed concerns about Everton’s potential new owners. They had dealings with 777 last year after they had bought a 45 percent stake in the British Basketball League.
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