The Premier League brought the potential buyers in for an in-person meeting, seeking answers about queries regarding 777’s finance source. As a result, the sale of Everton to 777 Partners appears to be in jeopardy.
The Miami-based businessman has amassed a portfolio of club ownership that includes Vasco da Gama in Brazil, Hertha Berlin in the Bundesliga, and Genoa in Serie A. A Bermuda-based reinsurer called 777 Re provided funding for both acquisitions, but it’s unclear if there will be sufficient funds to complete the Everton deal.
In September of last year, 777 Partners agreed to pay £550 million to acquire Farhad Moshiri’s majority stake in Everton. Josh Wander, one of the co-founders of 777, was spotted at the Toffees’ March 2 game at Goodison Park against West Ham United, prior to being summoned to the Premier League meeting.
The $55 million amount associated with collateral that 777 provided to get a loan in 2020 is the subject of a complaint lodged by investment firm Obra Capital against 777 in the Supreme Court of New York last week.
RedBird Capital Partners, which owns 11% of Liverpool’s owners Fenway Sports Group, partly owns Obra Capital, which asserts that 777 extended the loan three times before Obra called in the debt.
The court battle grew more intense when Obra claimed that 777 had given Steven Pasko, 777 co-owner, two “cash-rich” companies, Sutton Specialty Insurance Company and Sutton National Insurance Company, without paying Obra anything. Pasko said the transfer was done in order to “shield those assets from creditors.”
Obra is currently requesting punitive damages, interest, and the money that is owed.
Everton is cited in the petition as a result of the additional pressure 777 experienced after making the bid to purchase the team; according to the records, “777’s house of cards began crumbling down” as a result of the increased scrutiny.
In addition, the lawsuit claims that while though 777 guaranteed to be well capitalised, it did not fulfil its obligations under the third extended loan agreement in 2022, which prompted Obra to pursue repayment using collateral pledged against the loan.
The court filing also lists a number of other pending lawsuits involving purported unpaid debts totaling about $47 million.
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