The Mail on Sunday reported that US investment firm 777 Partners is in discussions with several lenders to utilize loans to finance their takeover of Everton.
The newspaper stated on October 29, on page 90, that 777 is adamant that the loans will not be secured by any of Everton’s assets, including the new stadium at Bramley-Moore Dock, in order to prevent the financially strapped Premier League team from taking on additional debt.
It is understood that they will instead take out loans against their non-football businesses.
A-Cap is reportedly one of the lenders that 777 has spoken with in order to get funding for a proposed £500 million takeover of the Toffees, according to The Mail on Sunday.
Not good
There have always been rumors that 777 will not have enough cash to purchase Everton.
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While they are going to ensure that these loans don’t add any extra financial burden to the Toffees, it does create possible problems for themselves in the future because these loans will need to be paid back at some point.
Due to 777 using their own businesses, they could get around paying large interest fees but still, the fact they are trying to complete a takeover by using loans doesn’t look good.
It shows that they don’t have the money needed to stump up what Farhad Moshiri wants for his majority shareholding at Goodison Park, which could come as another strike against them in the Premier League’s fit and proper person test.
Instead of simply celebrating the news that Moshiri is leaving, all Evertonians should be cautious about the takeover because there are simply too many aspects of it that we find objectionable.
It is likely true that there is a bigger devil you know than you realize in this situation.
Investing in the wrong people to manage his money at Everton and dealing with a Russian oligarch while keeping the club’s future in mind were Moshiri’s two primary transgressions.
