Reports: 777 Partners under extra scrutiny on both sides of the Pond

I'm glad there's going to be extra scrutiny because the last thing we need right now is another leveraged buyout.

The DOJ probe is in its early stages and may not lead to further actions. In response to a request for comment, an attorney representing 777 said the firm “considers these scurrilous and damaging accusations to be deliberately timed to undermine its ongoing commercial activities, including the ongoing period of regulatory approvals for the proposed acquisition of Everton FC.”

We shall no doubt see in the fullness of time which way the cookie crumbles!

It could be that they are a bad prospect, no one knows, but it does seem that some are trying to disrupt the takeover. If I was not paranoid before, the way Everton have been got at from all corners makes you think certain regime do not want Everton in the Premier League, or have a takeover.

But they have no problems whatsoever with Saudi owners, stinks of crushing Everton Football Club by any means.

On one hand, a takeover is needed. On the other, they seem shady. But then we say that about Moshiri, Usmanov and countless other Premier League club owners including the state-owned clubs.

Maybe it's due diligence. Maybe it's another kick in the teeth to Everton.

I hope we've got a Plan B; otherwise, Moshiri is reaching under the bed and down the back of the couch.

I think our former best Evertonian ever took the couch with him. So it's just Moshiri's mattress now!

Also, I find it strange that they want to own so many clubs in 5 different countries. Also, it's hard to see how they could possibly oversee all these clubs with the dedication that's needed.

I am sure some will point out that some Arab owners own more than one club, the difference being they have the financial resources to finance those clubs; I don't believe 777 Partners have the finances to do that.

The big problem for Everton is that our current owner is prepared to sell the club to 777 Partners provided they meet all the regularity obligations. But they have put in reportedly anything between £60M and £80M for day-to-day running, so if the Premier League rules against them being fit and proper, where does that leave Everton?

We have a £200M loan with Rights & Media Funding, and a £120M loan with MSP Capital so, if 777 Partners are ruled out of ownership, where does Moshiri go?

I read yesterday that Keith Wyness, a former CEO of the club, believes there are other American investors who would step in if 777 Partners get turned down.

It is easy to see why the commission decided that a fine was not appropriate punishment.

Former Everton CEO Keith Wyness says he is aware of investment groups ready to pounce should there be an issue with the sale of the club to 777 Partners.

Questions remain around whether or not 777 Partners will be able to clear all the relevant hurdles in order to acquire Everton, with scrutiny continuing over just how the deal will be funded and the business plan for the club moving forward.

Sources close to the US firm have insisted for some time to the Echo that there is confidence that deal will be closed and that 777 Partners will add the Blues to their stable of clubs, which also includes Vasco da Gama, Genoa, Standard Liege, Red Star Paris, Hertha Berlin and Melbourne Victory.

The process for a decision over regulatory approval is set to be reached before Christmas, with 777 Partners understood to have already committed £81m in loans to the club to provide working capital to enable it to meet ongoing construction costs for the new stadium at Bramley Moore Dock, as well as payroll for players and staff. The firm, the Echo has been told, could be on the line for as much as £100m by the time they take control, should, of course, they get the green light.

But there are other interested parties watching on in the background should the deal with 777 Partners not conclude with the investment firm acquiring the Blues. As reported earlier this month, the ECHO has learned of at least two separate investment firms, both American, who have an interest in making a move should the opportunity arise. Neither made a move earlier in proceedings due to the uncertainty over the independent commission decision which upheld the Premier League charge brought against Everton for a breach of profit and sustainability regulations.

The Blues were handed a 10-point deduction, although they have now submitted an appeal. It remains unlikely that any other investor would want to show their hand in the event of a deal collapse until there was greater certainty over the potential for future sanctions, and a workable deal with existing creditors, such as MSP Sports Capital, Metro Bank and Rights and Media Funding Limited.

Former Everton CEO Wyness, who was at the club from 2004 to 2009, told the Football Insider Inside Track Podcast: “If the takeover does collapse, it will be interesting to see if Moshiri can actually re-invest. I don't know if he's selling up because he has no more to give – that's one line of thought.

“What I think could be interesting is the new stadium. The cost of that stadium has caused all these problems, but it could actually end up being what saves Everton. There are investment groups out there, that I know of, who are interested in the club and in the stadium asset.

“I do think there would be last-minute deals to be done if the 777 Partners deal collapsed. I experienced this at Aston Villa when we had problems with a lack of funding from a Chinese owner. Because it was such a quality asset, there are always buyers out there. I think Everton will be the same, particularly with the new stadium.

“There will be some scary moments, but I believe a very good owner will come out of the woodwork. That's my hope, at least. The serious, qualified buyers will sit and watch and try and get the club at a lower price. That's how businesses become very successful. Particularly the American investors. There's no need to rush in at the moment – why would you? With the 777 situation, the points deduction – why would you rush in? If you're sensible then you sit and wait.”

And I continue to guess -- as always, emphasizing that I have zero supporting evidence -- that MSP is involved, either in some connection with 777 Partners, or just circling above, waiting.

I simply don't believe MSP would have put in a £100M stadium loan if they didn't fully expect to take ownership or otherwise ensure it would be a successful investment, because Moorad and Najafi are not gamblers.

Think these words will turn out to be prophetic. Like Wyness and others, I can't see how 777 Partners are getting past the FCA, there's too much negativity on more than one front.

December is going to be an exciting but scary month on and off the pitch.

There was a report last week, unsubstantiated, saying that 777 Partners had approached MSP owners about joining a consortium with them but MSP apparently turned it down.

Keith Wyness didn't elaborate on who might be involved in a possible takeover if 777 failed – other than he said it was an American group. Mike, you suggest that MSP wouldn't have put in £100M if they didn't expect to take ownership, but they are reportedly getting 12% on their loan. And I suppose you could argue the same for 777 Partners, saying they wouldn't have put the money into the club if they didn't expect to own the club.

Seeing that 777 Partners are based in the USA, I would imagine you know a lot more about them than I do. So what are you hearing from your side of the pond about them — and have you heard of another consortium from the USA being interested in taking over Everton???

And I would love to hear him tell the Premier League to go fuck themselves.

I know nothing about 777 Partners beyond what has been published about them (which isn't good). So I have no informed opinion about their business nous.

I do know something about MSP -- I even interviewed Moorad many years ago -- and I have great respect for their business judgement and integrity. Their (alleged) 12% return on the stadium loan won't be worth a plugged Mason Holgate if Everton goes into administration or the stadium project fails, and they know it.

So I'm quite sure they have it backstopped -- perhaps their £100M converts into equity under certain conditions -- and a backup plan behind that.

I have heard/seen nothing about what other US buyer(s) may be waiting in the wings, but as I said I have no reason to doubt Wyness's assertion that they exist. A fire-sale purchase of a distressed asset like Everton simply makes too much financial sense. Assuming we stay up and the stadium opens next winter, just think what the one-year investment return could be.

Flirting with administration?

The club is akin to a failing old pub decrepit with rotting foundations on the verge of collapse and a mad owner advertising it as a going concern.

The land has value with a nice little donkey sanctuary attracting loads of visitors but savvy investors won't cough till the roof caves in and the owner gets real on the price.

The more you think about it, the more it looks like 777 have lost their marbles getting in now.