Everton: ‘Messy’ legal twist on cards at Goodison Park with 777 Partners.
Kieran Maguire has warned that if 777 Partners’ takeover plan to buy Everton collapses, there may be a “very messy” legal situation at Goodison Park.
The football finance specialist disclosed that the group had financed Everton £170million thus far which, according to sources, is secured against the assets of the club, meaning the group is way down the list of priorities for repayment.
However, he went on to share that things could become unpleasant and dirty if the takeover is not authorized, with the prospect of legal action on the cards.
Speaking on The Price of Football podcast [4 March], Maguire shared: “777 have lent Everton £170million, at least. They are a prospective owner. If the Premier League rejects them, do they get their fingers burnt? It depends on the circumstances of the loan.
“What we’re hearing from fairly reliable sources is that Everton have borrowed money effectively on mortgage terms. That means the money is secured against the assets of the club. The money from 777 is low down the list of priorities in terms of who gets paid and when.
“We do see some owners, or prospective owners, coming in and saying ‘We know you can’t meet this month’s wage bill, here’s £500,000 to help you pay it, then the deal has collapsed and things can turn very nasty and it all gets messy and has to go through some legal regress.”
Will 777 Partners take control at Everton?
Maguire’s conclusion is based on what has been observed to happen previously, rather than any hint from the purchasers, but the likelihood of fresh upheaval behind the scenes at Goodison Park is a scary assertion for everybody concerned.
With funds arriving from 777 to help pay day-to-day running costs, there is every risk that they will want for those loans returned should they fail to complete their takeover, which could be an issue.
However, the plus aspect is that these loans are thought to be further down the list in terms of urgency for payback than others, which might see the issue put further out.
It has already been stated that Everton are in over £1billion worth of debt to multiple creditors having taken loans – something which could be a further headache for the club.
There is an ever-growing list of concerns regarding the takeover and 777 as a whole, with troubles throughout their companies including credit downgrades and litigation claims dominating the conversation around the merger.
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