Advisors to Everton, one of English soccer's oldest teams and a founding member of the Premier League, have begun searching for an alternative buyer for the financially struggling club, a person familiar with the decision said privately. The statement was made on request of anonymity due to negotiations.
Everton announced in September that they had entered into a deal to sell the club to American investment firm 777 Partners. But seven months later, the Premier League has yet to approve a deal beyond conditions, with questions still surrounding 777's finances.
At the same time, the club continues to struggle on and off the field. Everton have already received a two-point penalty this season for failing to comply with the Premier League's financial regulations and are at risk of being relegated from English football's top division for the first time since 1951.
Perhaps more worrying is the 146-year-old club's financial health. Everton currently owe around 160 million pounds (about $200 million) from private equity firm 777 Partners, providing the team with a much-needed cash injection to avoid bankruptcy.
But amid mounting questions over 777 Partners' finances and the legal troubles it faces in the US, accountancy firm Deloitte has announced that Everton's embattled Anglo-Iranian owner Farhad Moshiri has been asked to confirm other potential deals. The person familiar with the matter said he had been authorized to speak with potential buyers. With movement.
A spokesperson for Mr. Moshiri said the 777 agreement “remains in effect” and that work continues toward completion.
But as concerns grew over the club's dire situation, Deloitte reached out to other potential saviors, including sovereign wealth funds from several Middle Eastern countries, including Qatar. The Premier League already has team owners from Saudi Arabia and the United Arab Emirates.
In a letter to Everton fans last month, Moshiri asserted that the deal was finally on the “home straight”. 777 Partners boss Josh Wonder aims to do the same, writing that he and his company will continue to work with supporters “even after becoming the owners of Everton FC”.
But until the sale is completed, Everton's immediate future remains bleak. The new $900 million stadium is still unfinished and the new owners will need to find the funds to complete the work. The team is in 16th place in the 20-team Premier League. But they face the risk of further points deductions as losses continue to exceed the Premier League's cost control rules. Points may be deducted if the team goes bankrupt.
777 Partners, which also owns soccer teams in Brazil, Belgium and Germany, has come under increased scrutiny as the Everton sale has not progressed. The company has at various points struggled to meet the spending requirements of these clubs, frustrating team officials and worrying soccer regulators.
Outside of soccer, the company has faced a series of lawsuits and a liquidity crisis. Recently, one of the company's largest funders, a New York-based insurance company, announced it would reduce its exposure to the company.