HomeEuropeUncertainty surrounds Everton takeover as 777 Partners CFO resigns

Uncertainty surrounds Everton takeover as 777 Partners CFO resigns

Uncertainty surrounds Everton takeover as 777 Partners CFO resigns

The proposed takeover of Everton Football Club by 777 Partners, a Miami-based investment firm, is facing challenges following a series of concerning reports regarding the firm’s financial situation.

Damien Alfalla, Chief Financial Officer of 777 Partners, has reportedly resigned at a critical stage in the acquisition process of the English football club. Brett Kaufman, a specialist enterprise finance consultant, has been appointed to replace him as the investment firm awaits approval from the Premier League for its takeover bid.

Alfalla, who has been with 777 since 2017, was overseeing the firm’s finances during a period marked by reports of cashflow issues. According to Semafor Business, 777 has been attempting to sell assets to maintain Everton’s financial stability and fulfill its commitments to portfolio companies.

Despite Everton owner Farhad Moshiri’s announcement five months ago regarding 777’s acquisition of 94.1 per cent of the club’s shares, The Times has reported that the Premier League has requested detailed information regarding the source of funding and the firm’s ability to financially support the club over the next three years as part of the owners’ and directors’ test.

This report coincides with a new investigative journalism piece from Josimar Football, which reveals a document suggesting that the acquisition of Everton is part of a broader investment strategy aimed at financially supporting 777’s multi-club portfolio. This portfolio includes clubs such as Vasco da Gama in Brazil, Genoa in Italy, Standard Liege in Belgium and Red Star in France.

According to Josimar, a document prepared by A-CAP, a risk solution and service provider, in August 2023, outlines a UK£40 million (US$50.3 million) loan provided to 777 as part of the Everton takeover bid. The document suggests that the acquisition would enable 777 to raise capital, sell equity in its multi-club group and create liquidity. Additionally, the Premier League’s involvement is expected to significantly increase the group’s overall revenue generation.

Despite these challenges, 777 Partners has already committed approximately UK£190 million to cover Everton’s operating costs and the construction of their new stadium at Bramley Moore Dock.

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