Everton takeover: 777 Partners acquisition won’t be blocked by loan repayments

The potential acquisition of Everton by 777 Partners won’t be impeded by existing loans provided to the club by two firms, it is understood.

Everton owner Farhad Moshiri last week agreed a deal to sell his 94.1% majority shareholding in the club to Miami-based alternative investment firm 777 Partners, with the deal now going through the process of receiving regulatory approval from the Football Association, Premier League and Financial Conduct Authority.

777, who hold majority positions in other clubs such as Standard Liege, Vasco da Gama, Red Star Paris, Genoa, Melbourne Victory and Hertha Berlin, remain confident that they will be able to complete a deal within 12 weeks, the firm having to satisfy the relevant bodies and provide proof of funds for the takeover and a business plan for at least the next 12 months, as per Premier League regulations around the owners and directors test.

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One issue that had been suggested as a potential roadblock to a deal being concluded was the issue around what happens with regards to two significant loans that the club have with both New York-based MSP Sports Capital, the firm that had seen a deal to take a 25% stake in the club fall away earlier in the summer, and Cheshire-based lenders Rights and Media Funding Limited.

MSP loaned £100m to the holding company behind the 52,888-seater stadium build at Bramley Moore Dock in recent months, while Rights and Media Funding Limited have provided around £200m in funding to the Toffees in recent years.

Concern was raised that both lenders could call in their loans early and attempt to block the deal due to any perceived risk in a change of ownership of the club. Sources told the ECHO on Thursday that a ‘change of control’ clause only existed in one of the deals with the lenders, Rights and Media Funding Limited, while MSP’s loan to the club did not contain such a clause.

Rights and Media Funding Limited’s position was clarified early in the takeover talks process, while MSP, who pulled out of a deal to take a stake in Everton after Rights and Media Funding Limited opposed the structure of the transaction, are understood to not have a change of control clause in their deal that would allow them to block a takeover.

Last week a charge appeared via Companies House in relation to Rights and Media Funding Limited. It is understood that this wasn’t in relation to further funds being borrowed but a change of freehold to one of the properties against which the existing loans are secured.