Everton FC announces sale to Miami suitor 777 Partners
Everton FC has announced that Miami outfit 777 Partners has signed an agreement with owner Farhad Moshiri to acquire his full stake in the club.
Closing of the transaction is expected to occur in the fourth quarter of 2023 and remains subject to regulatory approval, including from the Premier League, the Football Association, and the Financial Conduct Authority.
Moshiri owns 94.1% of the club’s shares. The acquisition price has not been disclosed.
Mr Moshiri, a shareholder since 2016 and majority shareholder since 2018, said: “The nature of ownership and financing of top football clubs has changed immeasurably since I first invested in Everton over seven years ago.
“The days of an owner/benefactor are seemingly out of reach for most, and the biggest clubs are now typically owned by well-resourced PE firms, specialist sports investors or state-backed companies and funds.
“I have been open about the need to bring in new investment and complete the financing for our iconic new stadium at Bramley-Moore Dock, on the banks of the Mersey, which I have predominantly financed to date.
“I have spoken to a number of parties and considered some strong potential opportunities. However, it is through my lengthy discussions with 777 that I believe they are the best partners to take our great club forward, with all the benefits of their multi-club investment model.”
He added: “As a result of this agreement, we have an experienced and well-connected investor in football clubs who will help maximise the commercial opportunities, and we have secured the complete financing for our new stadium, which will be the critical element in the future success of Everton. Today is an important next step in the successful development of Everton and I look forward to closely following as our club goes from strength to strength.”
He thanked everyone at the club for their work, and said: “And to our fans, the last few years have been challenging but you have supported the club through it all and consistently been our twelfth man. You are the best fans and deserve success.”
South stand view of the proposed stadium
The 777 Football Group currently comprises Genoa CFC in Italy, Vasco da Gama in Brazil, Hertha BSC in Germany, Standard de Liege in Belgium, Red Star FC in France, Sevilla FC in Spain, and Melbourne Victory FC in Australia.
Josh Wander, founder and managing partner of 777 Partners, said: “We are truly humbled by the opportunity to become part of the Everton family as custodians of the club, and consider it a privilege to be able to build on its proud heritage and values.
“Our primary objective is to work with fans and stakeholders to develop the sporting and commercial infrastructure for the men’s and women’s teams that will deliver results for future generations of Everton supporters.
“As part of this, we are committed to partnering with the local community over the long term, working on important projects such as the development of Bramley-Moore Dock as a world class stadium venue, allowing thousands more Evertonians to attend our home matches and contribute to the economic and cultural regeneration of Merseyside.”
The deal is subject to regulatory approval, including from the Premier League, the Football Association, and the Financial Conduct Authority.
Everton’s statement said: “Out of respect for this process, 777 Partners will not be providing any further comment during this period of regulatory review.
“Mr Moshiri will also be seeking support from the club’s minority shareholders and will be writing to them in the coming days.”
The Miami outfit has been branded an “asset stripper” by fans of clubs it has either acquired or invested in.
Among the sides in its stable, Hertha Berlin was relegated last year from the German Bundesliga, Genoa was relegated in 2022 after 15 years in Italy’s Serie A, and Standard Liege fans staged protests at their last game over 777’s involvement in their club.
Wander has a colourful history, with three arrests between 2003 and 2018, although only the first of these resulted in charges, and a history of court hearings into unpaid debts.
Moshiri is understood to be seeking £500m for his shareholding, while the club has debts of around £225m, and millions more pounds will be needed to complete the new stadium.
Although Moshiri has invested heavily in the club, many fans are unhappy with his tenure. The club barely escaped relegation the past two seasons and is currently in a relegation berth with just one point from its first four games.
However, some see a 777 Partners takeover as a worse proposition.
And Rodger Armstrong, a regular Everton podcaster, believes a takeover is by no means a foregone conclusion, with regulatory approval necessary and, particularly from the point of view of current investors, MSP Sports Capital and RMF (Rights Media and Funding) who are reported to be behind deals worth more than £100m and £200m, respectively.
He told TheBusinessDesk.com: “As well as Premier League approval, existing lenders are likely to have ‘change of control’ clauses which they could exercise, and these could involve requiring full repayment of their loans.”
Farhad Moshiri
Moshiri published an open letter to Everton shareholders today which said:
Dear Shareholders,
I am writing regarding my intention to sell my shareholding in Everton to 777 Partners.
As you are aware from my open letter in July last year, I have been clear about the need to bring in new investment and complete the financing of our iconic new stadium at Bramley-Moore Dock, something that I have predominantly financed to date. The requirement for this has only become more apparent to me as we continue to see rapid changes in the nature of ownership and financing of top football clubs. The last two transfer windows have shown that the days of an owner/benefactor are seemingly out of reach for most and the biggest clubs are now typically owned by well-resourced PE firms, specialist sports investors or state backed companies and funds.
In seeking investment, I have spoken to a number of parties and considered some strong potential opportunities. However, it is through my lengthy discussions with 777 that I firmly believe they are the best partners to take our great Club forward with all the benefits of their multi-club investment model.
As a result of this agreement, we have an experienced and well-connected investor in football clubs who will help maximise the commercial opportunities, and we have secured the complete financing for our new stadium, which will be the critical element in the future success of Everton. The agreement will see Everton become part of the 777 Football Group, which already includes Spain’s Sevilla, winners of the last UEFA Europa League, Genoa of Italy, Vasco de Gama of Brazil, and other storied clubs from across the world. Through that group, 777 is providing its clubs with access to world-class tools to support their football operations and global commercial opportunities. It is my belief that this expertise, combined with the collective strength of the clubs within the group, is what makes 777 the right fit for Everton.
I say that knowing our Club’s future is a positive one. The last few years have not been easy for Evertonians – and I am one of you. It has been tough to watch our struggles on the pitch, yet the foundations for a brighter future have been laid.
In the case of the new stadium, we have made incredible progress over the last two years. We remain on track and on budget. Going forward, Everton will play in a stadium that will be the envy of the Premier League and beyond. A stadium that’s location will make it iconic throughout the game. A stadium that, most importantly, will give Everton a tremendous platform for growth and transform North Liverpool and the communities around it. I will forever be proud of what we have achieved.
Finally, I would like to thank the Chairman and those who are acting in interim positions at the Club for their commitment during the process to bring new investment and opportunity to the football club. They will continue to provide support and guidance in ensuring the smooth running of the Club during the next phase of this process, which will include the transaction gaining the required regulatory approval from the Premier League, the Football Association, and the Financial Conduct Authority. I will continue to update on that process as it progresses.
In due course, I will also be writing to shareholders more formally to ask for your support in the completion of the transaction by way of a shareholder vote. My intention, of course, will be to vote in favour of this investment, one which, as I have outlined and firmly believe, is in the best interests of our Club and its future.
Thank you for your ongoing support of this great football club.
