Kieran Maguire believes the downgrade in 777 Partners’ credit rating from excellent to weak doesn’t look good as it looks to complete a takeover at Everton.
The football finance expert said, “A weak credit rate means people are less likely to lend to the US investment firm and that it is likely to be charged a higher rate of interest on any loans,” during an appearance on The Price of Football podcast on Thursday, February 22, at 39:47.
He thinks these events are “red flags” and that the Premier League is justified to demand information from the firm, especially because the company has also been paying Belgian side Standard Liege’s salary late for the last three months. Standard Liege is one of the clubs in the corporation’s portfolio.
“Its credit rating has gone from excellent, to fair and it’s now weak, i.e. junk status if they were trying to issue the bonds or worse,” said Maguire.
“When your credit score is low, two things usually occur. You will find it harder to get a loan from people in the first place, and they will also charge you a higher interest rate because you pose a greater credit risk. It doesn’t seem good, then.
Additionally, information about Standard Liege, one of the clubs in the 777 stable, has surfaced. They had been paying their salary late for the past three months. Red flags on top of red flags on top of red flags. The Premier League is right to demand information from 777, even though they are receiving a lot of flak for failing to provide a clear response.
“If there’s nothing of issue and it’s all just smear stories, 777 should be in a position to provide the evidence to stand up and allow the Premier League to approve, as we’ve seen with Jim Ratcliffe. He’s whizzed it through in a fraction of the time we’ve had the Everton offer.”
Everton fans deserve 777 Partners update
With everything that has been revealed about 777 over the past few months, it’s very obvious that opinions on the corporation are still very much divided.
After the agreement with Farhad Moshiri was reached, it was anticipated that the acquisition would be completed within a fair amount of time, but recently, not much information has been released.
The Premier League needs to investigate a number of issues before making a decision, but the Everton supporters have a right to know what’s happening.
However, the truth is that the Toffees are in dire need of investment and are already dependent on 777 as a result of taking out substantial loans from the investment group.
The Blues need to know where they stand so they can start making progress at Goodison Park, therefore there has to be some serious action taken on this issue shortly.
See more updates on https://sportupdates.co.uk/
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