06/10/2023 15comments  |  Jump to last

Everton’s prospective owners, 777 Partners, could see their ongoing purchase of Vasco da Gama collapse if they fail to present the remainder of a payment installment that was due this week.

According to Globo, Brazil’s biggest newspaper, only R$38.5 million of a tranche of investment went through by yesterday's deadline with almost two-thirds still yet to be received by the Brazilian club according to the purchase agreement signed last year.

There appears to be some confusion over the amount owed this year by the Miami-based investment fund, however, with the newspaper reporting that "people linked to 777 claim that the advance in the middle of the year was worth R$30m."

The general director of Vasco SAF, Lucio Barbosa, had reportedly told club president Jorge Salgado that the money could be deposited outside of banking hours but no deposit was made.

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"The atmosphere at Vasco is apprehensive," Globo's report says.

“This means that if this Friday, from the beginning of banking hours, 777 remains in default, Vasco's board of directors will make the decision to ‘repurchase’ the shares. Due to a clause, it would cost R$1,000, a symbolic value placed in the contract for Vasco.

“The American company was contacted ... during the day, but did not comment on the delay and 777 will still have another chance to make the payment and recover the shares. Once the associative club exercises its right, the investor will have another 30 days to deposit the money and be up to date.

“Vasco, awaits information and justifications about the partner's delay and will consult the lawyers who participated in the agreement to move this Friday, if the money does not reach the Vasco SAF account. Even in default, 777 has the right to [rectify] the situation by November 6."

777 Partners currently have a deal in place with Farhad Moshiri to purchase his 94.1% stake in Everton and their bid is currently subject to regulatory approval from the Premier League and the Financial Conduct Authority.

However, as detailed on ToffeeWeb this week, the firm has been building a reputation for missing payments — they were late on a payment for their purchase of a 45% stake in the British Basketball League this year and Vasco da Gama are currently serving a transfer ban from FIFA for failing to make payments to three different creditor clubs. 

» Read the full article at Liverpool Echo

Reader Comments (15)

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Brent Stephens
1 Posted 06/10/2023 at 12:39:18
And the 777 deal looks as if it might have crashed. I think I'm relieved.
Jerome Shields
2 Posted 06/10/2023 at 12:57:44

The breaking news around 777 Partners and Vasco da Gama is not good. I can see the Premier League using the independent commission to force Moshiri to take a hit selling his shares in Everton to an owner who is preferred by the Premier League.

Paul Hewitt
3 Posted 06/10/2023 at 13:09:37
What is the news with 777. Is the deal off?
Pat Kelly
4 Posted 06/10/2023 at 13:33:28
No indication the 777 deal is off. They operate in an apparent constant state of chaos. It’s a high-wire financial engineering shell game.

If you think things look dodgy for Everton now, just wait till 777 take over.

Barry Hesketh
5 Posted 06/10/2023 at 13:33:51
The report in the Echo doesn't suggest anything that will prevent 777 taking over at Everton, save the usual checks that are already in place.

The Vasco situation is that 777 are supposed to have made a payment by tonight or last night, not very good on Brazilian time, but even if 777 don't make that payment in good time and trigger a buy back clause, they would on appeal, still have until November 6th to rectify the situation.

Jerome Shields
6 Posted 06/10/2023 at 14:47:16

You are right. Moshiri has signed an agreement with 777 Partners and made in public. If they can fulfil their obligation within the required time and within rules other than that, there is little that can be done. The scenario you predict is likely.

Michael Kenrick
7 Posted 06/10/2023 at 15:53:50
Worth emphasising your points, Barry @5.

Where it says: "777 will still have another chance to make the payment and recover the shares. Once the associative club exercises its right, the investor will have another 30 days to deposit the money and be up to date."

That really sounds like this is not the end of the world but instead yet another scaremongering piece about very little of substance. Just normal operating brinksmanship from 777 Partners as they move their money around in their perennial shell game.

I would imagine the remit of the independent commission is very tightly defined by the Premier League, Jerome @2, and that it relates only to the alleged P&S breach in 2021-22.

Kieran Kinsella
8 Posted 06/10/2023 at 16:11:18
They're just waiting on enough Genoa fans to cough up for that stadium fund so they can use that money to replenish the Vasco Da Gama money they used to lend to us.
Clive Rogers
9 Posted 06/10/2023 at 16:27:31
Really hope the deal has or will collapse.
Dale Self
10 Posted 06/10/2023 at 17:01:47
Going on like that could cut both ways in a high interest rate environment. They could just be working it ruthlessly because that money has more opportunity cost (squeezing everything from money markets or fluid assets for max return).

It also could indicate a group in over its head that possesses an unhealthy lack of respect for reputation and standards.

Jerome Shields
11 Posted 06/10/2023 at 21:16:24

I accept that the independent commission's remit will be as you say.

Upon reading Pat's post, I remembered that Moshiri has signed a contract and that 777 Partners can legally operate within the regulatory and statutory limits.

I don't think the government or Premier League can do anything about Everton's ownership. I expect them to receive fitness and regulatory approval. There seems to be a concerted media campaign to prevent this or at least muddy the waters.

Tony Abrahams
12 Posted 06/10/2023 at 22:02:31
It's hard to comprehend how these people could pass the Premier League's, supposedly stringent Owner's and Director's Test, because they don't pass many with regards the Evertonians right now.
Mark Taylor
13 Posted 06/10/2023 at 22:30:38

I've read Section F of the handbook and, apart from having a known interest in other clubs – one of the rules, but it seems one that has some slack in relation to foreign clubs – there is nothing in there that I can see would disqualify them.

Tony Everan
14 Posted 06/10/2023 at 22:38:16
Tony, the only test they seem to pass with many Evertonians is the one that says we will go bust if they don't take us over. And yet MSP wanted to but we're vetoed by R&MF. Over on Grand Old Team, they did a survey and only 8% of a thousand votes wanted them, this was before the latest multiple late payments.

I read a grim post that sounds like it's got an element of truth to it:

“All this indicates, however, is that 777 will separate the football club from the stadium and won't invest in the football club (which seems to be the problem at the clubs they have 'an interest' in). That way, they get to pay Moshiri the minimum amount possible. It's a bit like the administrators of Wilko saying they're looking to save everything but then agreeing a price for some shops with Poundland and B&M and closing the rest.

777 are business breakers and administrators in all but name.”

Jerome Shields
15 Posted 07/10/2023 at 05:32:00
Tony #12

As long as they meet the Premier League criteria, they will be deemed fit. This will be done by providing verifiable information, which they will provide and it will be correct.

There is no doubt that they see Everton in business terms as a distressed asset. They will be getting as much out of the assets as possible and will be productivity and profit-driven on the football side. Moshiri won't be paid more than is absolutely necessary for his shares and will probably lose money.

There are other suitors who have been waiting in the wings, including Kenwright associates hoping to profit, but they have been beaten by 777 Partners. Part of the media reports and rumours is their frustration of having missed out and hoping 777 Partners will fail, so they get a second chance.

The Premier League sees Everton as a distressed asset and will be glad that Moshiri has done a deal. Rights & Media Funding seem content enough, and they do know what they are about financially.

The one successful part of Brexit is the less regulation it afforded the City (finance). I have always thought that was the main reason behind Brexit.

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