Would-Be Everton Owner 777 Partners Faces Lawsuit Over Asset Transfers

Would-Be Everton Owner 777 Partners Faces Lawsuit Over Asset Transfers

The investment manager trying to buy Everton FC is being sued by a creditor who wants to stop the firm from transferring two subsidiaries, claiming that the transaction was designed to “shield” the assets.

In a New York complaint filed on Thursday, Obra Capital claimed that 777 Partners LLC, which had agreed to purchase 94.1% of the Premier League soccer team in September, had tried to transfer the two “cash rich” units to escape paying back its debts. According to Obra, co-founder Steve Pasko received Sutton Specialty Insurance Co., a surplus lines company located in Florida, and Sutton National Insurance Co. from 777 “for no consideration.” According to the company, Sutton National, a property/casualty insurer with offices in Dania Beach, is accepted in the majority of US states, including Florida.

Obra noted that 777’s financial stability has come under scrutiny following the acquisition of Everton of Liverpool and other sports franchises. Premier League authorities have been closely monitoring the transaction since concerns were voiced regarding Miami-based 777’s financial status, according to a December Bloomberg story that quoted anonymous sources with knowledge of the matter. Additionally, 777 holds a majority share in the following sports teams: Vasco da Gama in Brazil; Standard Liege in Belgium; Red Star FC in Paris; Hertha Berlin in Germany; and Genoa Cricket and Football Club in Italy.

“Until recently, 777 kept a low profile to keep its dubious business dealings and tendency to defraud creditors hidden from the public.” Then, according to Obra’s lawsuit, 777 started purchasing a number of sports franchises in Europe and Latin America in late 2021. “777’s ostentatious shopping spree raised concerns about the company’s funding source and operational health.”

According to Obra, it lent 777 $40 million in June 2020 and a further $15 million in the subsequent year. Although Obra claims that 777 owed it more over $63 million in June 2022, the amount is only $22.4 million as of right now.

Obra claims that the transfer ought to be stopped in order to safeguard all of the investment firm’s creditors, as 777 is facing numerous litigation for unpaid payments. In addition, Obra has previously sued 777 and the insurance for the debts; those cases are currently continuing. A request for comment on the case via email was not immediately answered by 777.

The reason for 777’s issues is that it has been pursuing sports teams, especially Everton, which Obra described as one of England’s “most financially troubled soccer clubs.” According to Obra, 777’s “house of cards” started “crumbling down” as a result of the deal’s increased attention.

Read more news on:sportupdates.co.uk