07/10/2024 9comments  |  Jump to last

Philippe Auclair and Paul Brown continue their reporting in Josimar on the collapse of 777 Partners, the Miami-based firm whose eight-month-long takeover bid for Everton eventually ended in May. 

With control of 777's assets and liabilities having been assumed by their primary backer, A-CAP, the football clubs they still control are all up for sale — as, it seems, are various other properties like a boat and a private jet — while the lawsuit brought against them by Leadenhall Capital Partners is ongoing in a New York district court.

Specifically where Everton are concerned, the article suggests that A-CAP's "expected return on the loans it made to Everton, which were worth just over £200 million, amounts to just £66 million in cash plus preferred equity.

"This equity cannot be converted for seven years and pays a small annual dividend at compounding interest. Also included in the deal are warrants allowing it to take a stake of up to 10% of the club. This is the deal agreed with The Friedkin Group..."

» Read the full article at Josimar

Reader Comments (9)

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Andrew Merrick
2 Posted 07/10/2024 at 16:50:15
The TFG takeover appears to be proceeding in an orderly fashion, and noting this update on former bidders, wow – we dodged a bullet...
Jack Convery
3 Posted 07/10/2024 at 20:09:34
All I can say is thank the Lord these charlatans never got hold of Everton FC. What the hell was Moshiri thinking of???

There but for the grace of god. We got lucky. Standard Liege, Genoa, Hertha BSC and several others didn't.

Fifa and Uefa need to look into this mess and learn the lessons, so other clubs don't end up in dire straits, wondering if they will be around for much longer.

Brian Cleveland
4 Posted 07/10/2024 at 20:22:52
The more I read of them, the scarier it gets. We didn't dodge a bullet, we dodged an H-bomb! Or at least it seems so, pending acceptance of the agreement Friedkin has made with A-CAP.
Nightmare.

Thank goodness they couldn't come up with the goodies to satisfy the Premier League.

Lyndon Lloyd
5 Posted 07/10/2024 at 20:29:08
I'll say this for Moshiri, while we don't know the interest rate on the 777/A-CAP loan (though we can assume it's probably high), and there was clearly massive risk to our future had their takeover gone through, those appear to be favourable terms he negotiated in the meantime.

£66m repayable, with the rest in preferred shares that aren't convertible for 7 years and warrants that would require further cash injections before they themselves could be converted.

We just need the New York court to okay the deal agreed with The Friedkin Group but the news today of the new holding companies registered by them with Companies House is further evidence they're confident it will.

EDIT: Scratch that. Turns out, the above deal is the one that TFG have negotiated with A-CAP, not the original terms agreed by Moshiri.

Christine Foster
6 Posted 08/10/2024 at 05:33:07
Lyndon, are you saying "£66m repayable, with the rest in preferred shares that aren't convertible for 7 years and warrants that would require further cash injections before they themselves could be converted." was the deal TFG negotiated with A-CAP, not what 777 Partners negotiated with Moshiri?

"Under pressure from insurance regulators in Utah and South Carolina, A-CAP appears to be liquidating every investment it can from the 777 Partners empire in order to keep its own wolves at the door. Its expected return on the loans it made to Everton, which were worth just over £200M, amounts to just £66M in cash plus preferred equity. This equity cannot be converted for 7 years and pays a small annual dividend at compounding interest.

Also included in the deal are warrants allowing it to take a stake of up to 10% of the club. This is the deal agreed with The Friedkin Group, which hopes to do what 777 Partners failed, and complete a takeover of the Premier League club."

The report reads as though the TFG deal is with A-CAP, hence why Leadenhall are not happy? What in fact did Everton actually get in cash terms from 777 Partners? And has Friedkin negotiated a liquidated asset value return to A-Cap?

Alan J Thompson
7 Posted 08/10/2024 at 06:09:53
Is there anything to confirm when this deal may have been first mooted? May it have been the reason TFG hesitated rather than being a similar ploy to their purchase of AS Roma but may have been their reading of how proceedings may pan out as it seems to have worked in TFG's favour.

All we need now is for them to see the loopholes in the Man City v Premier League ruling that may allow a boost to any transfer kitty. Our next sponsor may have "Oh what a feeling!" splashed all over the Royal Blue and players swapping their gold Rolls for a sponsored Japanese model.

Brian Cleveland
8 Posted 08/10/2024 at 15:41:03
Christine,

I thought I read that Leadenhall are happy with the agreement TFG has done with A-CAP.

I'm sure somewhere it said they would not stand in the way of that, but it has to be ratified by the New York courts I think is how it goes…

Did I get my wires crossed?

Kevin Molloy
9 Posted 08/10/2024 at 16:59:07
It'll be so effing great not to have to think about bleedin finance once these chaps take over.

Hopefully just footy from now on.

Nigel Scowen
10 Posted 09/10/2024 at 14:58:07
Hear, Hear Kevin

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