777 Partners’ ongoing attempt to takeover at Everton has caused their “house of cards” to start “crumbling down”, according to a US lawsuit.
On March 8, Matt Slater of The Athletic reported on the outlet’s website that Obra Capital, a RedBird Capital Partners company, was requesting “punitive damages” from the Toffees’ potential owners due to a disagreement over the repayment of an initial £55 million [£42 million] loan and claims that 777 had tried to “shield” assets from creditors.
The still-pending takeover attempt at Goodison Park is allegedly a part of a “flashy shopping spree” within football, according to documents filed with the Supreme Court of the State of New York on March 7. The fact that the attempt has not been approved raises questions about the company’s finances, which “it has not been able to answer.”
“With this enhanced scrutiny, 777’s house of cards began crumbling down,” the lawsuit said. It also mentioned the nine lawsuits that have been filed against the company in the last year, totaling over $100 million [£77.8 million].
RedBird, the company that owns Obra, also owns Toulouse, AC Milan, and a small portion of Liverpool.
777 refuses to comment on the matter, citing their history of labeling legal challenges as “baseless or opportunistic.”
Merseyside derby element in 777 court case amid Everton takeover delay
Every lawsuit will sound horrible because if they weren’t so bad, they wouldn’t have progressed to that point. However, even while one or two may be dismissed as “baseless” or “opportunistic,” if there are nine, it does start to create a pattern.
777 will present their case, and until a decision is made, it is unknown who is in the right in this matter. However, engaging in such activity will appear suspicious in light of the takeover.
Apart from this legal battle, Everton has to be essential to the American company’s operations or else they wouldn’t have been left waiting for months despite having already provided almost £190 million in loans.
Josh Wander reportedly thinks the Premier League’s hold-up is because of the club’s continuous profit and sustainability challenges, but the legal troubles the business is facing also have to be a factor.
The fact that the incomplete takeover is being specifically mentioned in a court case concerning the finances of the prospective news owners implies that the issue is not at all inconsequential, even though it may be sufficiently remote from the Toffees to be disregarded.
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