Advisers to Everton, one of English football’s oldest teams and a founding member of the Premier League, have begun searching for an alternative buyer for the financially troubled club, according to people familiar with the decision who requested anonymity to discuss private conversations. .
Everton announced in September that it had signed an agreement to sell the club to an American investment firm, 777 Partners. But seven months on, the Premier League has still not given more than conditional approval to the deal amid questions over 777’s finances.
At the same time, the club continues to fight on and off the field. Everton have already received two points deductions this season for failing to comply with the Premier League’s financial rules, leaving them in danger of their first demotion out of English football’s top flight since 1951.
Perhaps most worrying is the state of the 146-year-old club’s finances. Everton has borrowed around £160 million (almost $200 million) from 777 Partners, a private investment company – cash injections that have been necessary to help the team avoid bankruptcy.
But with questions mounting over 777 Partners’ finances and the legal problems it faces in the United States, accounting firm Deloitte has been empowered by Everton’s embattled British-Iranian owner Farhad Moshiri to speak to other potential buyers, according to people familiar with the subject. with the move.
A spokesperson for Moshiri said the agreement with 777 “remains in place” and they continue to work to complete it.
But with concerns growing over the club’s perilous state, Deloitte has approached other potential saviors, including the sovereign wealth funds of several Middle Eastern nations, including Qatar. The Premier League already has team owners from Saudi Arabia and the United Arab Emirates.
Last month, Moshiri assured Everton fans in a letter that the deal was finally “right of goal”. 777 Partners director Josh Wander also attempted to do the same, writing that he and his company remained committed to working with fans “once we own Everton FC.”
However, until the sale is completed, Everton’s immediate future remains bleak. Their new $900 million stadium remains half-finished, and any new owner will have to find the funds to complete the work. The team is 16th in the 20-team Premier League. But it faces the risk of further points deductions because its losses have continued to exceed cost control rules set by the Premier League. Points could also be deducted if the team becomes insolvent.
The lack of progress on the sale of Everton has expanded scrutiny of 777 Partners, which also owns soccer teams in Brazil, Belgium and Germany. At various points, the company has struggled to meet those clubs’ spending requirements, frustrating team officials and worrying soccer regulators.
Outside of football, the company has faced a series of lawsuits and liquidity crises. Recently, one of its largest financiers, a New York-based insurance company, said it would reduce its exposure to the company.