On the Price of Football podcast (11 September), a football finance expert from the University of Liverpool stated that the American company had placed themselves in a position where they could “effectively dictate terms” to the struggling Australian club, noting that 777 are also vying for a spot at Goodison Park.
Despite a “real and credible” alternative from Asia that is avoiding attention, Sky Sports’ Alan Myers stated on September 7 that the company is currently the “firm favourites” to replace the failed MSP Sports Capital contract on Merseyside.
“Yes, I think this is a good deal potentially for 777, and for any Everton fans 777 are potentially trying to have some form of relationship with Everton too,” Maguire stated in reference to the circumstance in Australia (16.15).
“I would advise using 777 with caution. They do seem to have a good deal of money. Initially, they invested, I believe, $80 million AUD in Melbourne Victory.
They do have ownership interests in numerous other clubs. They are persuaded that football clubs are terrible at marketing, and I believe this is a prevalent tendency of American investors.
If you look at Melbourne’s most recent financial statements, you’ll see that they were not just losing money but that there was a real possibility that they wouldn’t be able to continue operating at all. 777 stepped in at this point.
In situations where they can effectively demand terms, I would describe them as a vampire lender. Melbourne Victory will need to come up with a staggering amount of cash if the $30 million Australian amount is going to accrue 10% compound interest over the course of two or three years.
Concern?
Perhaps it turns out to be unimportant to Everton because Farhad Moshiri chooses a different course of action, or maybe 777 do secure participation in the Toffees, and everything turns out OK.
However, a statement like this from a prominent person like Maguire won’t do much to allay potential fears among the supporters, especially given how nothing about the team has recently been successful.
When it comes to the more grave judgments handed out on Everton and potential relegation in recent months, some of the terminology used on the situation at Melbourne Victory is similar.
Few investors participate in any firm, much less one that is suffering, without expecting to make money from it, but the likelihood that a company will be able to achieve its goals and the timeframe in which they will do so might vary greatly.
With fresh perspectives in the boardroom and a desire to raise the club’s profile both on and off the field, Everton appears to be in desperate need of something long-lasting and sustainable.
It’s difficult to tell whether that is what is now in the works, but Moshiri must certainly take great care to avoid reaching a deal with any party that will leave the Toffees worse off.
