Everton has announced that they will “assess all options for future ownership” following the expiration of the deadline for the club’s sale to 777 Partners.
The US-based consortium had agreed to purchase majority owner Farhad Moshiri’s 94% stake in the club in September 2023.
777 Partners were given until 05:00 BST on Saturday to finalize the share purchase agreement, but the deadline passed without a resolution.
The club stated they will “continue to operate as usual” while exploring their ownership options.
How did Everton get here?
Moshiri, who gained control of Everton in 2016, has faced criticism from supporters due to the club’s poor performances both on and off the pitch in recent years.
Everton reported losses nearing £400 million between 2019 and 2023, leading to an eight-point deduction for two breaches of the Premier League’s Profit and Sustainability Rules (PSR).
Following the agreement last September, Miami-based investment firm 777 Partners aimed to complete the takeover by the end of 2023. However, delays persisted as 777 failed to meet the Premier League’s ownership requirements.
In February, the firm was granted an extension. By May, the Premier League requested that 777 provide proof of funds and convert their £200 million loan to Everton into equity. Additionally, proof was needed to demonstrate the firm’s ability to repay a £158 million loan to MSP Sports Capital.
In early May, it seemed unlikely that 777 could meet these conditions as they had hired finance restructuring experts to cut costs. Amid mounting pressure on the Premier League to reject the takeover, its chief executive Richard Masters stated that the league was not responsible for deciding the club’s buyer.
“The Premier League’s role in this, as regulator, is to perform the [owners’ and directors’] test,” said Masters.
“It is not to decide who the current owner wants to sell his club to. That is his decision. At the moment, he wants to continue to have discussions with 777 about it.”
‘Unsuitable owners’
Despite fan protests against Moshiri’s ownership, the proposed sale to 777 Partners faced widespread criticism and increasing calls for the deal to be canceled as the takeover process dragged on.
In early May, the Everton Advisory Board wrote to Moshiri, urging him to reject 777’s takeover bid and explore alternative options.
“Each party must recognise the role it is playing in sullying the reputation of one of the most storied clubs in English football history and appreciate that all the rumour and speculation is causing extremely high levels of anxiety and concern to the club’s greatest assets: their fans,” a statement read.
The Advisory Board labeled 777 Partners as “unsuitable owners,” warning they would cause “reputational damage” to the club.
In a scheduled meeting with supporters later in May, Moshiri mentioned he had received “unsolicited” approaches from other parties interested in the club as talks with 777 dragged on.
One known interested party is Crystal Palace co-owner John Textor. The American businessman, who owns the largest stake in Palace, has announced plans to sell his 45% share in the Eagles and is monitoring the situation at Everton.
Toffees officials insist the club remains financially stable and claim there will be no “fire-sale” of players this summer to comply with PSR rules, despite director of football Kevin Thelwell and manager Sean Dyche both indicating that there could be sales.
The club’s new 52,000-seater stadium is expected to be completed in time for the 2025-26 season, with project costs having increased from £500m to £760m since construction began in 2021.
Everton finished 15th in the Premier League last season, securing their survival with three games remaining.