08/12/2023 65comments  |  Jump to last

The US-based investment firm hoping to buy Everton from Farhad Moshiri could stop its flow of loans to Everton if the approval process around its bid drags into next month.

That's the claim made in The Times by Martin Ziegler and Paul Joyce who say that 777 Partners have so far lent the club £100m and would need to stump up £20m more every month until their takeover is ratified by the Premier League and Financial Conduct Authority.

That's the amount that the article says is Everton's deficit each month to cover day-to-day operating costs but 777 are not prepared to keep providing unsecured loans to the club beyond December:

"Sources close to 777 admit the size of the unsecured loan is a risk but say it is also a demonstration of good faith and commitment to the club. The New York Times has reported that 777 borrows money from A-Cap, an insurance and investment business, that has provided funding at an interest rate of 20 per cent."

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While the Miami company are confident that they will get the green light, with some suggesting a decision could come down before Christmas, there are no guarantees they will.

The fact that late payments from 777 Partners associated with their investment in the British Baskketball League have put the BBL at risk of going into administration and that Vasco da Gama, the Brazilian club in which they have a majority stake, were handed a transfer embargo by FIFA on account of late payments for transfer-related fees, could count against them.

If their buyout of the Blues is successful, 777 would, according to Ziegler and Joyce, "look to refinance the estimated £300 million owed by Everton to .... Rights & Media Funding and MSP Capital ... and to refinance the debt related to the construction of their new stadium at Bramley Moore Dock.

 

Reader Comments (65)

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Colin Glassar
1 Posted 08/12/2023 at 06:56:03
Very worrying news this. We need to sort out our ownership mess asap.
Paul Hewitt
2 Posted 08/12/2023 at 07:04:22
Just when things where looking up. Moshiri needs to start putting his hand back into his pocket until the club is sold.
Colin Glassar
3 Posted 08/12/2023 at 07:12:41
He won't, or can't, Paul. Without the Uzbek’s money he's just another tax dodging billionaire on (Monaco's) skid row.

Now it's being reported the stadium costs are rising exponentially. This man has well and truly fucked us over big time.

Paul Hewitt
4 Posted 08/12/2023 at 07:17:47
If he doesn't, Colin, then we go into administration. Then he gets sod all for the club.
Jerome Shields
5 Posted 08/12/2023 at 10:13:23
There always has been a deadline to the end of this year to my knowledge. The concern I have is the amount of interest that is being charged, which is unsustainable and will only be reduced if secured. It is understandable enough for this issue to be raised to get a deal completed.

Fortunately I think that we are 5 years away from a correction in financial markets, which may allow time for 777 Partners to move on. They are not a long-term solution.

Moshiri's personal sources of finance have quit. His letter of guarantee was a requirement under Profitability and Sustainability Rules to qualify the 2021-22 Accounts. I think he has to renew that commitment if required for the 2022-23 financial year.

Steve Brown
6 Posted 08/12/2023 at 10:33:19
1) Other clubs are going to sue us
2) Our players are going to sue us
3) 777 are going to stem loans
4) We are getting another 10 points for the last set of accounts 5) The stadium will cost an extra £150 million (the one from bullshitter supreme Matt Hughes in the Mail).

Pure hack garbage from journos desperate to file copy – they are the last to find out the facts and the first to make things up.

Dave Lynch
7 Posted 08/12/2023 at 10:52:11
Steve... one of my nephews is a journo.

He has told me sports journos are viewed as the lowest of the low by other journos.

Dan Nulty
8 Posted 08/12/2023 at 11:13:01
You can just see it can't you, 10 points deduction reduced by half after appeal, then a further 9 pts deducted for going into administration.
Robert Tressell
9 Posted 08/12/2023 at 11:37:31
Let's just hope the takeover completes soon.

The team is on the up. If the finances stabilise we could become a very good side again.

Tony Everan
10 Posted 08/12/2023 at 12:23:08
The way 777 Partners are plate-spinning their finances on many fronts makes me wonder whether we are going to get any stability anyway if their takeover somehow gets approval.

Sounds like blackmail time, approve the deal or you are courting administration for the club. A game of high stakes brinkmanship with the authorities. How flexible will they be and will they turn a blind eye to the many possible financial and legal issues facing 777?

Would they really waive 777 submitting fully audited accounts as they have been unable to do so in previous recent takeovers?? Seems strange to even have to consider that, or how proper due diligence can actually take place without them.

Would other consortiums (at least two) as alluded to by Wyness and the Echo, step in at the last minute, forcing Moshiri to accept a lower price? Would these owners be any better than 777?

There are more questions than answers and everything is well and truly up in the air. We're still firmly between the devil and the deep blue sea.

One positive is the stability on the playing and management side, and the ability to overcome the penalty will have been noted by any prospective investor. Maybe some with deeper pockets……dream on!

Clive Rogers
11 Posted 08/12/2023 at 12:42:27
The more I read about 777 Partners, the worse it seems.

It's reported that they lost $600M in the year up to June 2022 which they have hidden from the regulators. They have further losses on the way, apparently.

Vasco de Gama have just avoided relegation by the skin of their teeth. I don't think any of their clubs are performing well. They are subsidising EFC by £20M per month with money borrowed at high interest. They seem to be just what we don't want.

Paul Hewitt
12 Posted 08/12/2023 at 12:53:21
Clive @11.

I don't see anyone else lined up to buy us. It's 777 Partners or administration I'm afraid.

Dale Self
13 Posted 08/12/2023 at 13:03:37
Take 19 fucking points then. We still stay up and fuck-up your pretty boys' Euro dreams. We will do it with a smile.
Paul Hewitt
14 Posted 08/12/2023 at 13:18:30
Dale, steady on mate. I think 10 points is enough.
John Raftery
15 Posted 08/12/2023 at 13:22:16
If the takeover isn't approved, are there any other options out there or will we be forced into administration with an unfinished stadium and a further points deduction?

Mindful that football has welcomed club ownership by organisations with close connections to countries hosting visits by war criminals, it will be hard to stomach rejection of 777 Partners — notwithstanding their apparent flaws.

Joe Corgan
16 Posted 08/12/2023 at 13:26:06
As much as I want Moshiri out, I have no faith that 777 are the right party to sell to. Moshiri may have proven clueless but I've never felt he was actively vindictive. 777 appear to me to be chancers with neither the funding nor sporting acumen we desperately require.

My concern is that the purchase will be finalised and we'll be stripped for parts – including the new stadium... before eventually being sold for a tidy profit. That's just the vibe I get from these guys.

Paul Hewitt
17 Posted 08/12/2023 at 13:28:36
I don't get this "777 Partners will just take the stadium, then sell us on"…

What are they going to do with an empty stadium?

Dale Self
18 Posted 08/12/2023 at 13:39:57
Paul 14,

Okay but enough of this fake ass feeding frenzy in the media. This is nothing but soft psyops. Let them know we don't fear whatever shit they want to make up and if you want to bother us, get in line.

Enough with the fear and doom loop stuff. We have desirable assets and the market is recovering from an unusually high interest rate environment.

Steve Dowdeswell
19 Posted 08/12/2023 at 13:53:16
Isn't there a sheikh floating about somewhere after pulling out of the Man Utd takeover?

Easy to prove right and proper after the Newcastle takeover and enough fiscal capacity to support us for the foreseeable.

Just as we get over the 10 points deduction you can't help thinking about a further 9 coming our way for going into administration.

The Premier League must be over the moon and probably feeding the media with these stories to try to scare off any potential investors.

Simon Harrison
20 Posted 08/12/2023 at 14:33:02
Hi Lyndon, I've tried to read this but forgot that the (Sunday) Times is behind a paywall.

Is there any chance you could post the article on this thread please? If so, 't would be much appreciated, thank you.

Good wishes, and keep up the great work Lyndon and team (MK).

Mark Taylor
22 Posted 08/12/2023 at 16:15:16
It seems to be that Tony 10 probably has this about right. It feels to me like a game of chicken, with 777 trying to leverage the sitation in their favour, maybe to reduce the sale price. Dangerous game though with £100m plus of (presumably) unsecured debt at stake. Or did Moshiri allow that to be secured against the stadium? However structured, presumably the current creditors, not least R&M, are OK with 777, because as I recall, they blocked the other American bidders, MSP.

What are these contingency plans the club claim to have. It doesn't seem obvious to me the club has much leverage here. It could easily run out of cash. So, to avoid administration, which would be a disaster for everyone, it's either Moshiri deciding he will continue to fund (surely unlikely) or there is another buyer ready and able to complete.

Who? MSP returning to the fray (presumably with R&M's blessing this time)? A new bidder? I've said all along our biggest threat is not the 10 point deduction or the financial compensation claims, but the sale failing and us running out of cash.

Mike Gaynes
23 Posted 08/12/2023 at 16:25:10
Steve #19, we need Yanks, not Arabs. Plenty of US investment money around, just looking for a home in football. A US private equity firm nobody ever heard of just bought 1/8 of PSG.

Paul #12, Keith Wyness says there are US buyers ready to swoop in and snap up a bargain if 777 Partners blow it. Whoever it is, they won't let administration happen and neither will MSP, which has a £100 million stadium loan at stake.

Clive #11, that's crapola without some context. Yeah, Vasco barely stayed up, but they were promoted to Serie A just last season, right after 777 Partners bought them. They'd spent two years in Serie B. That they stayed up is good news, not bad.

Plus Genoa was likewise promoted to Serie A in Italy right after being acquired by 777 Partners, and they look to stay up (14th right now). Jonjoe Kenny's Herta Berlin, which was relegated last spring a couple of weeks after 777 bought them, is in the top half of 2. Bundesliga.

So the only 777 property not impressing is Standard Liege, which is stuck mid-table and was bounced out of the Belgian Cup yesterday as former Everton youth Isaac Price was red-carded.

Ray Jacques
24 Posted 08/12/2023 at 16:43:22
Surely with a brand new stadium, hopefully staying up, a solid fan base – we would be an attractive proposition.
Kieran Kinsella
25 Posted 08/12/2023 at 16:48:25
Mike

Being in the top half of Bundesliga 2 behind giants such as Holstein Kiel, Furth and SV Elversberg isn't exactly good for a team that have played in Europe in recent times. These are teams that have been playing non league football within the last few years that attract crowds of between hundreds to 8,000. Hertha averages 44,000 even in the second division. It's embarassing to see them languishing behind the German equivalents of Torquay and Rochdale.

Genoa FC, yes they got promoted under 777 partners but only after they fist got relegated under 777 partners. So they are simply back at square one and if their tax deal doesn't get approved by the courts it is being reported Genoa FC will go bankrupt this summer.

Simon Harrison
26 Posted 08/12/2023 at 16:53:26
Hi Mark, I agree to an extent in the context that 777 are trying to minimise their capital outlay to purchase EFC, and what Tony said at [10].

However, it seems to be completely at odds with the reality of the situation to me; UNLESS 777 plan to drive EFC into administration, and then pick the club up for pennies in the pound, and leave Moshiri holding the shares and company controlling the Stadium development..? A stadium that he is currently unwilling to fund it's completion, and bear in mind it was announced this week that the costs for completion will be increasing due to material and labour costs increasing! Go figure...

At that point 777 get a potential £400-500m EPL club (assuming that EFC beat the initial sanction levied on them, and a further nine points deducted for entering administration, and then avoid relegation) for probably around the £75-85m mark, working on something like 15-20p in the £)

Unfortunately, if we do go into administration, with several high value debts charged to Goodison Park and associated club property, we would be left to either rent Goodison back, or ground share with someone (NB No, not Mordor!!) Either that, or we don't have a ground to play at, do we?

As far as the information in the Public domain goes, the loans made by 777 to EFC for day-to-day running costs are unsecured, and are being used as a 'goodwill gesture'. So, if 777 do pull the plug, I would again assume that 777 have an arrangement with Moshiri, or they write it off as a tax loss?

I presume that the initial arrangement would have been that the value of the loans would go towards the off-setting the final purchase price?

If 777 do reverse their decision to fund EFC, then the only immediate solution I can see, is Moshiri to either self-fund or seek lending/credit to allow the club to continue. As a curve ball, maybe suspend the stadium construction until a buyer is found? As the real deadline for completion is the 26/27 season to be able to get approval for inclusion in the 2028 games. This would help free up the running construction costs for day to day costs (Robbing Peter to pay Paul? (Traill maybe? hehe))

Much like yourself Mark, I haven't a clue who would step in to buy the club.
My one thought is that MSP, and Bell and Downing may form a consortium and step in with a lowball offer, if 777 either fail to get approval or withdraw. Unless as you say Moshiri has other sticks of dynamite in the fire? I would say irons, but knowing Mr. Moshiri's past record...

The 'blue bottle' in the ointment though, is that the commission hearing outcome has not been resolved as it stands, and will not be resolved until the appeal commission sits, and makes its' decision.
At that point all the stakeholders will have clarity. I.e. the other 19 EPL clubs, Moshiri and the club themselves, any potential suitor(s), and of course 777 if they are still engaged in the takeover process at that point?

I think until that point, I'm going to try and put aside the feelings of dread regarding Everton's parlous financial state, and focus on the football.

I look forward to your thoughts Mark

Anthony Flack
27 Posted 08/12/2023 at 17:49:15
Forgive my oversimplification but surely administration is the worst option for Moshiri.

In the absence of other funding, he'll have to stump up or lose everything

The only risk is he cannot afford to stump up ….

Bobby Mallon
28 Posted 08/12/2023 at 18:12:51
Why do people keep mentioning administration? If they don't buy us, then Moshiri pays… end of. Isn't it?

Why don't us fans buy the fucking club?

Simon Harrison
29 Posted 08/12/2023 at 18:14:30
Anthony [27] Nothing to forgive mon ami, you're absolutely right.
Mark Taylor
30 Posted 08/12/2023 at 18:23:58
Simon,

I understand the feeling of dread.

On the matter of administration and the game of chicken, I think we know too little of how the administrator would approach the matter, nor which of our various debts are legally secured on the stadium itself (possibly none).

Instead I'd like to consider (speculate about) our valuation as a club. First off, I don't believe we are a going concern in the sense that we generate positive cashflow. Moreover, I think this is likely the case even if you took out the ongoing stadium financing, which at least goes into a fixed asset.

Turning to the stadium, this is seen by many as our big selling point. It is undoubtedly a tangible asset with value. But £750m of asset value? Sorry to say but I think we are kidding ourselves.

If we forget about the silly quoted interest rates of 20%, or even 12% (which I think is R&MF's charge), and re-financed it as 10% or even 8% (which would be a stretch), even the latter gives you interest to cover of c £60m. That would need to come from additional revenue given we are struggling right now to even break even. That revenue would be from 1) additional ticket revenue and b) venue hire.

It appears our current ticket revenue is around £20m, or a bit less. Even if we doubled it- surely unlikely- that still leaves £40m to find from venue hire. Is there a £40m market for this in Liverpool and/or the NW. The O2 in London is apparently £200-500k per day to hire. It's much smaller but it is indoor and in London. What rate would we get? How many days would be need to rent it per year? Is there a market for that?

I realise I'm more bearish than some on here, but I think we are in a hole because we have chosen the very worst time to do this, with costs escalating massively because of well know supply chain problems, combined with the desperately bad timing of a (long overdue) correction in the price of money and risk. I wondered if Goodison re-development might help but it appears the net proceeds from this is likely low tens of millions.

My conclusion is that Moshiri probably needs to be virtually completely wiped out for this to work in this environment. He may not accept that but for sure his shares are in my view worthless. Maybe he gets some loans back.

Administration brings another 9 points, a probable January fire sale of players to keep bills paid and probable relegation. At which point, what is the value of the stadium without a Premier League club to anchor tenant it? It's quite some game of chicken.

Simon Harrison
31 Posted 08/12/2023 at 18:34:13
Bobby,

The reason why administration keeps getting mentioned is that it is still highly possible for the club to go into administration.

Why would Moshiri keep funding the club, when he can't find a buyer? That is just throwing good money after bad. Even he wouldn't be that stupid. QED; 777 are funding the running, and thus maintaining the existence of the club currently.

His worst case doomsday scenario would be to assign his last (relatively) debt-free asset, BMD (It's only got £140m against it) to a new company he controls. He then stops construction, eliminating immediate costs, and he allows EFC to go into administration to recoup something like circa £70-80m.

He then hawks off BMD to somebody, clears his borrowings and reduces debt from his initial outlay (circa £250m + £140m). All he needs to do is sell BMD for £600m+ and he gets a little bit of capital back to help pay Uncle Ali back his £400m he lent Little Farhad.

If we did go into administration like that, Goodison Park and ALL EFC property goes to creditors with charges on them, and hey presto, we either have to rent it back, or ground share.

That is the situation as far as I am aware.

Regards the club, as a crap analogy;

Imagine you have a really nice Jag XJS, which has former glories and won motor races and what not, but is having engine problems and bodywork issues. However, the current owner can't afford to, or won't maintain it anymore.

But a potential buyer says, if it passes its MOT and still gets a racing license, then they'll buy it, but in order to get its MOT the potential buyer has to keep giving cash to the tight-arse owner just to keep it running.

The potential buyer, after being fleeced by the tight-arse owner for 7-8 months, finally tells said owner, that they're not interested anymore, and walks away.

Said owner then looks at the car, and decides rather than pay for its repair and upkeep, it's financially cheaper to scrap the car for parts and walk away with bits he can sell to other owners in the future.

That is the relationship 777 Partners currently has with Moshiri, and possibly it might be what Moshiri decides to do.

As stated elsewhere, let's hope for a future and hopefully, a brighter one.

Simon Harrison
32 Posted 08/12/2023 at 18:38:40
Mark, very quickly, nip off to Companies House and look up Everton FC. Three charges are on Goodison Park, the Royal Liver Building sections EFC (Moshiri owns) and all other related properties currently owned by EFC.

If we go into admin. EFC become homeless...

I'll come back later.

ps: Michael has moved the Bloomberg post or our in Thread OP to an item in the "On the Web" section.

It might be easier to C&P our last few posts on there and keep it about that rather than trying to conflate this OP with 'Bloombergs' OP. If you see what I mean..? Confused, I am..?

Trevor Powell
33 Posted 08/12/2023 at 19:07:31
If Sir Jim Ratcliffe is reading this, just think that you could buy out a much better club, no plastic supporters or prawn sandwich brigade and a new stadium rather than 25% of the most obnoxious luvvie club of all time! Then he has to share a bed with the despicable Glazers who obviously think they can mug him off big time!

Come on down, Jim, your future could be royal blue!

Matt Traynor
34 Posted 08/12/2023 at 23:14:25
Where has this figure of £20m per month come from? Because if it's true, then surely are screwed for PSR again? Aren't there limits to borrowing to plug losses?
Clive Rogers
35 Posted 09/12/2023 at 11:19:53
Surely administration would only be a last resort for Moshiri if he cannot find a buyer should 777 Partners drop out or be dropped.

He would only allow that to happen to cut and run rather than commit what's left of his fortune. He must be struggling to entertain the dodgy 777 Partners.

Mark Taylor
36 Posted 09/12/2023 at 12:03:00
Hi Simon,

I reminded myself of the current charges. Metro and R&MF are both against the club (which of course wholly owns the Stadium entities). MSP (via Blythe) do appear to be specifically against the stadium. Not sure whether this gives them preferential treatment in the event of a liquidation.

I can't actually see any charge at all from Moshiri, nor from 777 Partners, though that might be because it is recent and hasn't appeared yet. Or simply because they don't have one. Without sight of the sale agreement, it is impossible to know 777's protection for their funding of our cashflow.

In the event of administration, you say we would become homeless. That is theoretically possible if the stadium could be disposed of for a decent price. But that comes back to my point, how much is that stadium worth without an anchor Premier League tenant?

Unless Liverpool decide to occupy it, which is surely unlikely, it has in my view insufficient value unless tied to Everton. Certainly nothing close to £750m, or even £600m. I'm not sure if commercial and residential rights exist to boost its potential value, that might change that equation.

I'm not sure that Moshiri can assign the new stadium at Bramley-Moore Dock in the way you suggest, cutting out R&MF and especially MSP. The way I read the former's charge is that it is a floating charge over all assets owned by EFC, including the stadium subsidiaries. Others more expert than I may be able to comment on that.

My reading is that administration would be a disaster for Moshiri. Bear in mind creditor priority is different for football clubs. The football debts – players, transfer fees owed to other clubs etc – get paid first, even before HMRC. It appears he may even be behind our other main lenders, given they do actually have charges, and maybe even 777. I think he'd be wiped out.

I think his back is against the wall here and I've said before, if this all falls apart, he would do well to stay in the UK and increase his security. I don't think Alisher will get any money back.

Trevor Powell
37 Posted 09/12/2023 at 12:17:40
If they take over, 777 Partners should give Sean Dyche the chance to re-ignite Richarlison at a club where he was loved and supported, whether it be a loan etc.
Alan McGuffog
38 Posted 09/12/2023 at 12:21:57
Mark,

I could well imagine that lot occupying the new stadium at Bramley-Moore Dock. They would immediately get planning permission to somehow raise capacity to 80k. The council would then put in a monorail system directly to Speke airport.

You watch...

Clive Rogers
39 Posted 09/12/2023 at 12:25:44
Trevor, that would be good, but they will be after a big fee most likely which will rule us out.
Danny O’Neill
40 Posted 09/12/2023 at 12:34:20
I have to confess to not being convinced by 777 Partners but we need something to give, unless there is something else waiting in the wings. I would think so with that magnificent stadium growing each day.

Someone more informed on these matters can comment. In my simple head, this feels like 777 Partners playing hard ball to get the Premier League to play ball and push it through. Pun intended.

Meanwhile, with Everton and Chelsea to their credit having given up millions by voluntarily cutting their links with Russian owners and investors, we see that the de-facto owner of Newcastle meets with Putin.

They can dress it up all they want, but Newcastle are state-owned by a regime that has a dodgy human rights record at best.

It smacks of hypocrisy. We cut ties with Usmanov costing us millions. Chelsea lose their benefactor. The state sponsored owners of Newcastle meet the war criminal Putin and it's acceptable?

And for the sake of balance, the UK government isn't off the hook here. They sanctioned it, no doubt due to our Defence relationship with Saudi that is worth about £10 billion.

Clive Rogers
41 Posted 09/12/2023 at 13:13:17
Danny,

I too can't believe that nobody else would be interested. Our fans sell out every game and it's no secret that our financial problems are largely a result of woeful management for the last few decades.

Decent owners could correct the latter, but I doubt that it is 777 Partners. Television income rises every year to record amounts.

Matt Traynor
42 Posted 09/12/2023 at 13:35:29
Danny #40

Putin also met with UAE before the Saudis, on the same trip, which brings Man City's owners into the frame.

Also, I can assure you that UKPplc's defense contracts with KSA are worth multiples of your figure.

Simon Harrison
43 Posted 09/12/2023 at 15:55:53
Hi Mark [36 & others], afternoon all,

Firstly, Mark, many thanks for looking at the six (not three as I previously stated) outstanding charges. I looked again last night, after I'd put my daughter to bed.

Can I also thank you for reminding me how the charges are structured. It is as I originally thought, although, I had forgotten the R&MF charge that has a floating charge on all assets of EFC and any subsidiaries. Which as you point out would include the Stadium Development subsidiary. So not just a mere £140m of associated charged debt, but nearer £340m when Blythe, MSP and R&MF attached debt is totalled.

I never thought Moshiri had any charges associated with the club due to the background work that Paul the Esk has already done. As for 777 Partners, as you say, no-one is privy as to how that arrangement is structured other than the two parties involved.

My earlier thought, was merely an assumption on my part, that to me made the most logical sense. However, the words logic and Moshiri don't always happily cohabit the same sentence or thought processes.

Regards us becoming homeless in the event of administration, I should have been clearer. As we have both 'discovered' as it were, EFC are effectively mortgaged to the hilt and, in the event of administration, Goodison Park itself would be used as collateral for repayment of debt. Never mind the associated debt with the new stadium. Hence, Goodison Park, its offices and indeed access to Finch Farm (as it is specifically included in one charge) would effectively be out of EFCs control.

I agree with your down-valuation of the new stadium project. I never thought that it would be worth £760m+ now (due to increasing construction costs) However, I plucked the figure of £600m partly to do with the existing completed infrastructure, and partly for the potential commercial, planning, and residential rights that you alluded to in your post. From what I have read, a value of between £550m and £600m seems to be a fair third-party assessment. At this point anyway. Maybe with the increase in construction costs, it may even bump the value up somewhat?

With regards Moshiri reassigning BMD, I would suggest it could be possible, if Moshiri paid up the Blythe/MSP £140m debt, or took it on himself rather. Followed by a renegotiation with R&MF for their debt, including maybe a partial repayment of say (again plucking figures out of the air) £60m towards their debt.

At that point, Moshiri would have an asset judiciously valued at say £550m for the cost of £450m – but with a capital requirement for £760m (and rising) less £390m so a difference of £370m to go before completion (and rising)…

To achieve what though? An empty stadium probably, when completed and with all the associated add-ons only worth about cost price of £750-800m. A pretty pointless exercise to my mind after reviewing it.

Maybe the new stadium has been the financial White Elephant after all, or the straw that broke the camel's back, or...?

The question there, is surely it would have been more prudent to assure Everton achieved greater football success (ie, reaching European football consistently) before starting the new stadium project? I mean the land and opportunity wasn't going anywhere soon? Mind you, as the saying goes, hindsight is always 20/20.

My reading is that administration would be a disaster for Moshiri. Bear in mind creditor priority is different for football clubs. The football debts – players, transfer fees owed to other clubs etc – get paid first, even before HMRC. It appears he may even be behind our other main lenders, given they do actually have charges, and maybe even 777. I think he'd be wiped out.

After reading yours and other posts, Mark, and having time to have slept on it, I have to agree: administration should be anathema to Moshiri. Which in turn, should give us all hope that EFC will survive its current woes and travails. Unless of course we get relegated, which currently doesn't look probable. Let's hope the team keep performing consistently.

I think his back is against the wall here and I've said before, if this all falls apart, he would do well to stay in the UK and increase his security. I don't think Alisher will get any money back.

Yes, I have to again agree. Little Farhad certainly appears to have limited options currently. Though, I read on another thread that Paul the Esk seems to appear confident that 777 will not become our new owners – but EFC will have a new ownership deal in the New Year. Let's hope the next lot are much more transparent and credible. nb: I'm not asking for them to be squeaky clean, but at least semi-palatable please.

Regarding Little Farhad and Uncle Ali; I would suggest to Moshiri to just enjoy Life to the full while he has the means to do so. On that note, I intend to keep an eye on the futures of Barrett-Baxendale and Mr Ingles, as I would tentatively think that, if they know where the bodies are buried, they wouldn't want to join them. Just my morbid and cynical nature coming to the surface there.

Anyway, we have a football game tomorrow, don't we?

Let's go, Blues! Another 3 points would be a very welcome tonic currently.

Mark Taylor
44 Posted 09/12/2023 at 16:36:45
Hi Simon,

Yes, you're right: Goodison Park would remain part of the assets under an administration. But an administration isn't a liquidation (though it may lead to one).

The goal of an administrator is to keep the club viable, fulfilling fixtures, for which you need a ground, with a view in the first instance to a third-party sale (and maybe this is the scenario Paul the Esk is envisaging).

It is hard to discern what an administrator would do in our situation. I could foresee slashing costs, especially on the admin side, and probably player sales. Right now, you'd have to imagine stadium work would stop.

Quite apart from it being not worth his while to carve out the stadium for himself, UK law would take a dim view of anyone doing such a thing for a company that is not a going concern.

Moshiri may not be a director but he would struggle to find any to do that undertaking for him. Very risky for the individual. In fact I would think Colin Chong in particular must be getting very jumpy, this could blight his career.

It's easy to say in hindsight but I fear the new stadium at Bramley-Moore Dock has indeed been the straw that has broken the camel's back. Just very unfortunate timing from both sides. It's still theoretically possible for the club to be a success but it will need someone with deep pockets and patience to make it work, even if Moshiri does take a very big bath.

If you are correct about development being a real financial upside, over and above the stadium, for the club, that would certainly make a very big difference but I've not seen any clear evidence of the scale of that upside.

In the meantime, hopefully Dyche continues to maximise what he has. My strong impression is that book he talks about writing will be quite a read. I sense he is trying to keep calm amidst chaos...

Martin Farrington
45 Posted 10/12/2023 at 09:30:31
Thank you to all above for concisely explaining what is believed to be the current predicament Everton are in off field. Loved the car analogy, Simon.

I am so so sad. This Moshiri selling to 777 Partners only deal – it reminds me very much of how the previous owner behaved when selling. Lies, damn lies… and Kenwight.

There has to be other interested parties. 777 Partners would be the furthest from anyone's thoughts when looking at selling a Premier League club, unless you were as bent as £777 note.

We are owned by a gangster. His frontman and previous to that, a crook. I am sure there are 'open secrets' circulating about the true and shocking state of our accounts and liabilities. Unknown to us. Which any half-decent wealth-laden nation would baulk at.

I am convinced that buying Everton does not mean ridding it of Russian interest. I am concerned Kenwright caveats would be transferrable and USM would remain a part of the regime, in a hidden capacity. Therefore… step forward, 777Partners.

And the gobshites at the Premier League have no moral right to prevent this happening. As stated above, Putin is partying with Newcastle's owners. Where is the statement from the Premier League condemning and sanctioning Newcastle Utd???

It isn't corruption. It's worse… far worse.

Tony Abrahams
46 Posted 10/12/2023 at 11:22:08
A lot of the things you wrote in the post above have definitely been in my thoughts since Everton said that they had agreed a deal with 777, Martin.

I know someone who has been involved in brokering this type of deal and was actually involved in that Newcastle deal, and when I mentioned this to them, he said that although anything is possible, he would still be very surprised if this was the case in this deal, because with 777 being an American company, they will surely be aware that the FBI, would be all over anything connected to the Oligarchs.

I know it’s allegedly Moshiri’s club, and it appears at least one member of the 777 group is/was not scared of taking risks, (nothing wrong with this, imo) but this isn’t just a few ounces of Charlie, and I’m not sure many people would want the FBI, looking into them. We will see.

Paul Hewitt
47 Posted 12/12/2023 at 05:18:20
Apparently 777 are now wanting to pull out of the deal. Don't know if that's good are bad?
Brian Harrison
48 Posted 12/12/2023 at 10:05:30
This just highlights what a financial mess we are in, we have got an absentee owner, possible new owners who are borrowing money to keep the club afloat on a daily basis. Now if reports are correct the longer it is before they get an answer to have they passed the fit and proper they may withdraw their loan facility.
Quite where that would leave us as a club I have no idea but it seems to me that without this day to day money being provided then the possibility of administration looms large.
Considering that we had to take on loans from Media & Rights for £200m and MSP for a further £100m and 777 are pumping in £100m as well as selling Richarlison, Gordon and Iwobi for large sums, it makes you wonder what the future would look like under 777. Maybe both MSP and Media and Rights would want their loans repaid in full on completion of a takeover.
Should that happen I could see us lose many players in the first window after the takeover and maybe that should that happen would Dyche want to stay.

I am more worried over the ramifications if 777 get control than I am over the 10 point reduction.

Nicholas Ryan
49 Posted 12/12/2023 at 10:27:11
It would just be SO Everton, to zoom up the table to the verge of European qualification. and then go Bust!!

If 666 is the sign of The Devil, what does that make 777?!

The one shaft of light, is that Keith Wyness, who must know a bit about this sort of thing, was confident the other day, that there were alternative investors waiting in the wings.

Jerome Shields
50 Posted 12/12/2023 at 12:44:39
I was expecting some type of reassurance from Moshiri. Apparently a high up source in Everton is confident that 777 Partners will takeover a 94% stake in Everton by the end of December.
Barry Rathbone
51 Posted 12/12/2023 at 14:14:48
The circumstances of sensitive financial deals are never made public and my guess is interested parties know just enough to recognise the scale of the disaster here. It looks like 777 can justify gambling on steadying a sinking ship in order to flog it on for a quick profit.

Genuine big hitters with a more long term game plan will be far less cavalier. Their idea will be wait for the fire sale and pick the club up for £5 quid but we'll only find out when paramedics turn up and wheel Moshiri out on a stretcher accompanied by tanks of oxygen

James Marshall
52 Posted 12/12/2023 at 14:33:04
Jerome@50

And a quick Google search will show the Daily Tory claiming there is "no chance" 777 will be approved so the deal is over.

This is becoming like the transfer window sagas where nobody really has a clue what's happening.

Barry Hesketh
53 Posted 12/12/2023 at 14:44:43
How unusual for Matt Hughes of the Daily Mail, to paint his usual Armageddon picture for anything connected with Everton, however, Davie Powell of the Liverpool Echo, in his latest updated story believes:

Prospective Everton owners 777 Partners have committed to fund working capital through to at least the end of January as they await a final decision on whether they have been given the green light for a takeover.

777 Partners stance on Everton administration report, takeover and Premier League response

Dan Nulty
54 Posted 12/12/2023 at 15:02:46
God I hope we can get a knight in shining armour to get us out of this mess. Whilst Matt Hughes will be pure speculation it is something I am concerned about. It would be sod's law we get some of the 10 pts back then deducted 9 for administration.

We won't be able to add to the squad in January, I just can't see how we will have the funds.

Steve Brown
55 Posted 12/12/2023 at 15:30:31
Matt Hughes is a fantisist masquerading as a journo.

So far, he has claimed.

1) 5 clubs will sue us and the compensation will put us into administration, leading to a 9 point deduction and probable relegation.

2) Our own players will sue us if we are relegated.

3) We will receive an additional 10 point penalty in March for the latest set of accounts, leading to probable relegation.

4) The stadium cost will over-run by an additional £150 million.

5) The Premier League will not approve the deal by the end of December, and 777 will refuse to continue funding.

6) Everton will then become insolvent and go to administration. This will lead us to a 9 point deduction and, yes you guessed it, probable relegation.

He’s had us in administration twice, sued twice, deducted 38 points, (10 + 9 + 10 + 9), relegated 3 times and over-spending on the stadium because the price of steel has gone up. He is a complete joke.

If you do want to read it, just do it for the comedy value.

Tony Abrahams
56 Posted 12/12/2023 at 15:34:44
The only thing that I can take seriously is that we surely haven't got long left before the Premier League makes a decision on whether 777 Partners are going to be accepted or rejected?
Si Cooper
57 Posted 12/12/2023 at 15:54:28
What we are potentially facing is what any P&S/FFP regulations should actually be about.

Instead of prohibiting very wealthy people spending their own money, what any club owner shouldn't be able to do is load the club up with debt that owner can then simply walk away from.

Every time a club comes onto the market, it should be guaranteed as debt-free.

Peter Quinn
58 Posted 12/12/2023 at 16:00:26
Have a look at this BBC Sport Article:

Pontypridd United: Cymru Premier club face potential 141-point deduction after FAW probe

David Phillips KC, who was the Chairman of the Independent Commission that gave EFC a 10-point deduction is referred to dealing with a Football Association of Wales Commission involving Pontypridd United.

18 charges for failing to pay players and meet contractual obligations. Admission of guilt. Penalty: 6-point immediate deduction. Separately the Club were told if they field any ineligible players this season, they will get a 135-point penalty.

We faced one charge and received a penalty of 4 points more. Wonder if the Football Association of Wales intervened to try and fix the penalty?

Clearly Mr Phillips took a view our one charge to which we pleaded guilty was more serious than the 18 charges Pontypridd United faced!

John Keating
59 Posted 12/12/2023 at 16:44:07
Peter,

Obviously the FAW did not tell Phillips and his "independent" team what result to come up with prior too or during the independent inquiry.

Fortunately for Pontypridd, the FAW don't have anyone as corrupt running them as the Premier League.

Kieran Kinsella
60 Posted 12/12/2023 at 17:03:57
Can someone explain to me this £20M per month income shortfall?

The 2022 financial reports showed our total expenses as £202M. Well, 12 x £20M is £240M. So how in the hell can we have a shortfall of £20M per month if our total expenses last year were £200M and we have since cut costs?

And that's a shortfall so, assuming our income was similar to last year (£180M), it would mean our expenses have risen to £420M this year from £200M last year. I realize interest payments are an issue but how does that make any sense?

Neil Carter
61 Posted 12/12/2023 at 21:33:02
Moshiri needs to step up and be a responsible owner or he's risking a hell of a great asset – both a great club and a great deal of his own money.
Tony Everan
62 Posted 12/12/2023 at 21:47:52
Kieran,

I read somewhere that we are roughly breaking even on the day-to-day running costs. The £20M per month shortfall is money that's needed to keep the construction of the stadium rolling along until completion.

Kieran Kinsella
63 Posted 12/12/2023 at 21:49:52
Tony,

Cheers, that makes better sense.

Paul Hewitt
64 Posted 12/12/2023 at 21:53:40
I don't think the money 777 Partners loan us is for stadium costs. Sure I've read it's for wages and basically keeping the club going.
Brendan McLaughlin
65 Posted 12/12/2023 at 22:06:30
Ahem, Paul #65,

And we certainly wouldn't use the money provided to us by 777 Partners for anything other than what it was specifically provided for?

Perish the thought!

Matt Traynor
66 Posted 15/12/2023 at 03:40:23
"Everton's new ownership group isn't just ringing alarm bells with fans. Fellow Premier League bosses were horrified by 777's Josh Wander's attitude at their recent meeting, shocking his besuited peers by keeping his baseball cap on the whole time."

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