The blue side of Merseyside finally has something to cheer about. The arch-rivals of Liverpool, Everton who came from the jaws of relegation last season, had a torrid start to their Premier League campaign this time season as well managing only one point from the first 4 games.
However, the fans have finally something to cheer about. Reports are buzzing that 777 Partners, a US-based private equity firm hailing from Miami, has acquired Everton Soccer Club. The takeover amounts to a staggering sum exceeding $685 million.
It’s official! 🔐
— BBC Sport (@BBCSport) September 15, 2023
According to an official statement issued by Everton Soccer Club, the club has successfully sold itself to 777 Partners. Farhad Moshiri will hand over the reins to this American private equity company after buying his sizable 94.1% stake in the club. They have deemed the deal solid and anticipate completing it by the end of this calendar year.
The investment fund made a significant decision to add Everton to their portfolio because they had previously acquired or invested in Hertha Berlin, Sevilla, and Standard Liege, among other well-known clubs.
While eagerly anticipated by Everton fans, this acquisition is still subject to legal requirements, including review by the Premier League. It comes after a recent incident in which MSP, a different American organization, was in negotiations to increase its influence within Everton but the deal fell through at the end of the previous month.
Welcome Everton fans 🔵⚪️ pic.twitter.com/fwdP1aqPrU
— 777 Partners Foot (@777PartnersFoot) September 15, 2023
Everton had several difficult years where they have experienced financial losses exceeding $500 million over the past five years, battled the looming threat of relegation for two straight seasons, and is currently the subject of a significant investigation into an alleged violation of Premier League financial rules.
The reason behind the deal between Everton and MSP Sports Capital that collapsed
Back in August, Everton saw a potential windfall of up to $190 million slip through their fingers, as U.S.-based investment group MSP Sports Capital withdrew from a high-profile investment deal.
The New York-based group and the Premier League club had originally agreed to an exclusivity agreement back in May. The proposed plan was extremely ambitious; it aimed to inject a substantial sum of up to £150 million ($191 million) into Everton FC in the form of convertible debt, with the eventual goal of attaining a 25% ownership stake in the illustrious 145-year-old club.
— EFC DAILY (@EFCdaily_) September 14, 2023
The deal had entailed the following complexities: They designated a portion of the investment, $125 million, for the Everton Stadium Development Company. In order to oversee the building of Everton’s eagerly anticipated new stadium at Bramley-Moore Dock, club owner Farhad Moshiri created this subsidiary in 2017. The club would have received the remaining $60 million in its entirety.
The main issue that had prevented deal had been resistance from Rights and Media Funding Limited, one of Everton’s current lenders.
According to reports, MSP demanded “high tens of millions” from Rights and Media Funding Limited before they would approve any investment funds reaching the club. RMF had already increased Everton’s loan facility earlier this year to a sizeable $253 million.