Everton’s purchase has been referred to as 777 Partners’ “last throw of the dice” because it was revealed they had “unusual” debt before a deal was reached, according to Josémar.
A few weeks before a deal to buy out Farhad Moshiri at Goodison Park was made, the American company owes creditors a total of $3.6 billion [£2.995 billion] last summer, according to a story published on the Norwegian outlet’s website on March 5.
Although the amount of debt is “way more than had been thought previously” and the company’s difficulties in servicing it “raises fresh concerns about the finances of the US group,” it is stated that such figures would be acceptable in “exceptional circumstances.”
According to Josimar, as of last summer, 777 owed $147.2 million [£117 million] in outstanding repayments. While it is possible that the remainder may have been paid off in the months that followed, it is deemed improbable given that their insurance division has had its credit rating lowered twice.
The situation has been dubbed a “very risky enterprise” because the club has had to borrow almost £200 million to cover its operating expenses while waiting for the Premier League to rule on the takeover. This could be interpreted as either “a demonstration of confidence, courage and determination, or the last throw of the dice of a gambler who’s lost at almost every table he’s sat at before.”
Still awaiting a Premier League response regarding Everton’s takeover is 777 Partners.
It would make sense to assume that the Premier League would reject a firm that is so deeply in debt and appears to be finding it more and more difficult to make payments.
Therefore, the fact that it has taken close to six months and no conclusion has been made implies that there must be another aspect at play here, albeit it is unclear if it is 777’s or the league’s fault.
It certainly looks like a very precarious scenario for the potential new club owners, with Kenneth King reportedly lending 777 the finances to keep the Toffees afloat as the months pass.
However, that still begs the question of why Richard Masters and his staff haven’t just ended the current impasse by providing a negative response.
Josh Wander and the league authorities are expected to hold in-person talks soon, which, should things proceed, should undoubtedly result in some kind of breakthrough.
However, based on the financial picture presented, it appears that 777 needs the sale to close just as much as Everton needs new ownership, if not more.
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