Everton’s Future With 777 Partners Looks Uncertain as 777 Faces $600 Million in Lawsuit
Concerns have been raised over the financial health of Miami-based investment firm 777 Partners. This is the reason the Premier League hasn't approved their takeover of Everton although they own portions of other teams in Australia and Europe. It appears that a lawsuit submitted on Friday to a federal court completed the transaction. According to the lawsuit, Leadenhall Capital Partners, a British asset management company handed 777 more than $600 million, per The New York Times. However, subsequent investigation revealed that around $350 million worth of assets were either fraudulent, did not belong to 777, or had already been pledged to other lenders. Numerous businesses and individuals connected to 777 are included in the case, including its owners Josh Wander and Steven Pasko, and the main lender Kenneth King and his company A-Cap.
Takeover of Everton F.C.
It was challenging to keep track of what they were acquiring so quickly. Initially, they consented to purchase Italy's oldest soccer team. They then invested in a very well-liked Brazilian team. They have acquired a stake in renowned clubs in Australia, Germany, France, Belgium, and France.
The Miami-based investment firm, 777 Partners always made a great deal out of its new deals. Then, in September, they revealed the biggest bombshell—they were buying Everton F.C., one of the oldest clubs in England and one of the founding teams in the Premier League. All of a sudden, 777 Partners was well-known in the soccer world. However, not much was known about them other than their name. They claimed to have $10 billion worth of assets, but it was hard to check because they kept things private. Lawsuits against them made potential partners worried. They had a bunch of bills they hadn't paid, some from just this month.
777 Partners is suddenly up against something they have managed to dodge up until now as they attempt to break into the Premier League: a thorough examination of everything they own, their finances, and their bold American co-owner, Josh Wander, who once declared he was the most serious investor in soccer history.
Response and reassurance from 777 partners
It's not a given that their plan to take over Everton, which would require hundreds of millions of dollars and other resources, will succeed. It may take months for the Premier League, the Football Association of England, and a British government regulator to respond in the affirmative. What they discover may have an impact not only on Everton but also on the other financially troubled teams in the 777 network.
Mr. Wander wrote a letter to Everton supporters on Saturday, letting them know he understood their concerns stemming from what they had read in the press. However, he claimed those tales were false. “We aren't just here to make a quick buck. We want to build businesses and keep them for a long time,” a spokesman for 777 said in an email. In the letter to fans, Mr. Wander said he would share resources like player recruitment and business stuff with the other teams in the group.
Potential fallout for Everton and 777 Partners
The lawsuit, filed in a New York district court, says, “Wander has already admitted to rampant and fundamental breaches of the parties’ agreements—the only question now is whether Leadenhall will be able to recover millions of dollars in damages from a house of cards on the brink of collapse.” A spokesperson for A-Cap said the claims in the lawsuit are “baseless.” Leadenhall referred to A-Cap as the “Wizard of Oz behind the 777 Partners’ curtain.”
Everton declared in September that Farhad Moshiri, the team's primary owner, had consented to sell 777 his 94.1% ownership share. However, 777 was unable to supply the required financial information for clearance. Therefore, Everton began searching for a new buyer in April. This season, Everton has also suffered points for violating financial regulations. The allegations made on Friday might terminate 777's pursuit of a Premier League franchise.