The clock is ticking for 777 Partners to complete their protracted plans to takeover Everton.
According to Bloomberg, the Miami-based firm is locked in negotiations with another investment firm, Blue Owl Capital, for a hefty £360 million loan.
The scramble for funds comes as a deadline looms for repaying a previous loan of £158m to MSP Sports Capital. The loan was secured last year to aid the construction of Everton’s new stadium at Bramley-Moore Dock.
Settling that tab is a crucial condition set by the Premier League for approving the takeover, which has already been delayed for seven months.
Reports earlier this week suggested 777 requested an extension from the Premier League to repay MSP by the end of May. However, there’s no indication that either MSP or the league will be receptive to this request.
Faced with this pressure, 777 are turning to Blue Owl Capital, a firm boasting $165 billion in assets under management. The proposed loan would be secured against the new stadium.
The funds would serve crucial purposes such as repaying the outstanding loan to MSP, depositing the required £60m into escrow and potentially completing the Everton takeover upon receiving the league’s approval.
777 co-founders Josh Wander and Steve Pasko previously relied on A-Cap, a New York financial services giant, but recent reports claim A-Cap has begun severing ties with 777, which indicates a potential shift in their support.
As if that wasn’t enough, regulators in Utah and South Carolina have urged A-Cap to further reduce their exposure to 777, potentially ending that source of funds for the company’s co-owners.
The news of 777’s talks with Blue Owl Capital comes amidst Everton’s crippling debt.
The massive loan from Rights & Media Funding (RMF) is costing the club a staggering £423,000 per week in interest payments, highlighting the dire financial mess Everton have become with Farhad Moshiri at the helm.
Any new owner, including 777, will need to address this mountain of debt by either consolidating or restructuring the loans to ease the burden of interest payments.
With questions surrounding 777’s access to funds and the sheer scale of Everton’s financial woes, the proposed takeover appears to be facing yet another significant roadblock.
The path to new ownership for Everton remains unclear which doesn’t bode well for the club’s long-term future.