February 25, 2024

Haymarket, a US insurance provider, has already given 777 Partners €350 million (£306 million) to buy Everton, and according to Josemar, they are still “confident” that the deal will be successful.

The counter-insurer under Kenneth King’s control, which 777 already owes hundreds of millions via another of his companies, is the source of the funding for the takeover, according to a report by Paul Brown and Philippe Auclair for the Norwegian outlet on November 20. If necessary, the amount provided could rise to €500m [£437m].

After the Toffees were hit by a 10-point deduction for a profit and sustainability breach the Americans are reportedly undeterred over the buy-out and lawyers have even started exchanging documents related to the purchase.

Everton

According to Josimar, King is “absolutely crucial” to the Miami-based company due to their struggles to raise capital externally, although an internal source claimed it was “patently false” that they have failed with every capital raise since August 2022.

But further questions among Everton fans are likely since King is currently a defendant in an American civil lawsuit related to a “complex and massive fraud” – King and all other defendants deny the allegations.

777 reportedly see the purchase of Everton as crucial to their entire football portfolio due to how it would make it easier to attract investment, and give them access to the new dockside stadium which they project as having a €1billion [£875m] equity value.

Answers, but more questions

After weeks of mystery over where 777 were supposed to get the money together to complete this purchase it appears there is finally an answer, which should in theory be a positive development.

But as with everything in this process it appears to bring with it yet more questions, and won’t make Josh Wander and Steve Pasko any more suitable as owners in the eyes of many.

If they are set to be on the hook for so much money from a single source it begs the question as to why King is apparently still such a willing lender, and the presence of yet another lawsuit in the equation is surely unwelcome.

Everton

It is becoming more and more obvious why 777 is so determined to see this takeover through, and their enormous equity valuation on the new stadium aligns with Matt Slater of The Athletic, who thinks it will eventually be the foundation for Everton to escape financial difficulties—possibly more to the owners’ advantage than the club’s.

Since the Toffees are potentially facing hefty compensation payments to former relegation rivals in the wake of their spending breach the new owners might need access to a huge amount more cash.

It sounds like they can get a decent chunk more from King, but as they are already needing to pump in loans for the day-to-day running of the club as it is it remains to be seen whether it would stretch far enough.

All loans have to be paid back eventually and if King is willingly stumping up hundreds of millions to 777 it is likely to generate fears as to how and when he will expect a return on investment.

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