Everton may face administration as takeover continues to stall

The pending ownership change at Everton is once again under threat, and the potential for administration is real. According to a report by Mail Sport, Premier League officials are taking their time in a review of the potential new owners of the club. Farhad Moshiri previously agreed a deal to sell a majority stake in the Toffees to 777 Partners back in September. However, the deal has hit several snags along the way.

777 Partners currently owns multiple soccer teams around the world. One of these clubs, Vasco de Gama, was punished with a transfer ban just weeks after the Everton agreement. At the time of the penalty, the Brazilian side allegedly had yet to pay off previous transfer fees.

Financial issues then continued to haunt 777 Partners throughout the fall months. The American investment group failed to provide official financial documents to a British regulator regarding the purchase of Everton. This regulator, the Financial Conduct Authority, has to approve 777’s financial standing for the deal to finish. 777 Partners then failed to disclose $600 million in losses as well.

777 Partners not willing to continue temporary funding

These issues are delaying the takeover at Everton. The aforementioned news outlet claims that English top flight officials have informed 777 Partners that the pending acquisition will not be approved before the end of the year. This is massive news considering Everton’s precarious financial position at the moment.

777 Partners previously loaned the Merseyside club $125 million since agreeing the deal with Moshiri. The move was to help Everton’s operating costs during tough times for the team. The Toffees previously picked up a deduction of 10 points due to recording losses that violated profit and sustainability rules (PSR).

While the American group was willing to loan Everton a nice chunk of change, they apparently will not continue doing so while they wait out the Premier League’s official decision on…

Source link : https://worldsoccertalk.com/news/everton-may-face-administration-as-takeover-continues-to-stall-20231212-WST-476730.html

Author : Chris Moore

Publish date : 2023-12-12 19:58:21

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