February 25, 2024

Everton takeover could collapse as new owners face up to £300m compensation bill.

American investment firm 777Partners could pull away from a £500million deal to buy Everton after the Premier League side were docked 10 points for failing to meet profit and sustainability rules.

 

777Partners, an American investment firm, may withdraw from a £500 million offer to purchase Everton due to the possibility of having to pay £300 million in compensation.​

The Premier League docked the Merseysiders 10 points on Friday for not meeting profit and sustainability guidelines, which dealt a severe blow to majority shareholder Farhad Moshiri’s proposed sale.

 

The fact that Everton would have to fight for survival in the Championship next season was made even more likely when an interim hearing conducted by the same independent commission decided that Burnley, Leeds, and Leicester could pursue a compensation claim that would push Everton to the verge of bankruptcy.

 

It is known that 777Partners inserted a number of provisions in their agreement with Moshiri that, should the Premier League’s case against the club be upheld, would result in a reduction in the purchase price of Everton. However, Everton may now have to provide compensation totaling £100 million to three of the teams that were demoted in the previous three seasons.

 

777Partners is unlikely to agree to pay such price considering the club’s current debt, which exceeds £500 million. Everton lacks the money to cover any large compensation costs. They would face a nine-point penalty if they were pushed into administration, making it impossible for them to avoid the drop.

 

Leeds, Leicester and Burnley were given 28 days to decide whether they are going all the way in their fight for recompense. Everton’s shellshocked board are now in the process of lodging an appeal against a ruling which instantly plunged the team into the bottom three.

 

If the punishment is upheld they will be facing a battle for the future of a club that is supposed to be moving into a new 52,888-capacity stadium next year. Their argument that stadium costs were amongst a number of mitigating factors which saw them fail the Premier League’s PSR rules by less than £20m were given little credence by the panel.

 

‌Potential new owners 777Partners were already facing a challenge to pass the league’s fit and proper person’s test. But they have been lending Everton £20m-a-month to meet the wage bill and could become creditors if the worst case scenario unfolds.

 

Jordan Pickford, the Everton goalkeeper, declined to discuss the issues facing his team following Wednesday night’s 2-0 victory over Malta in Euro qualifying at Wembley. But Gareth Southgate, the manager of the Three Lions, is confident that his No. 1 won’t be affected by the situation at Goodison.

“I haven’t spoken to Jordan about it,” Southgate stated. However, he has handled a few extremely trying seasons at Everton, when they have been in the lowest half of the league, really well.”

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