A company worth £131 billion might be a new 777 funding avenue in the wake of Everton’s purchase, according to reports.
Josimar believes that 777 Partners may have a new “avenue to funding” for the future Everton stadium development. On March 23, the outlet reported on their website that after the American company’s attempt to raise capital via brokers Tifosy last year was “unsuccessful,” with a spokesperson claiming it had been put on hold and would only be restarted if they received Premier League approval for the deal, it was doubtful that 777 could provide the funding to meet “draconian” requirements outlined in a letter from the league.
Sources close to the company have reportedly suggested that 777 may acquire access to financing through Blue Owl financing, a “alternative investment asset management company” that claims to manage over $165 billion [£131 billion] in assets. However, Josimar reports that Blue Owl’s involvement will be limited to finance the Bramley Moore Dock project and not the takeover transaction itself. Is one of the four Premier League prerequisites for the Everton transaction met?
Providing proof of funding to cover the remainder of the stadium’s construction is one of the four major conditions that the league wants satisfied before granting approval, so if 777 has found a means to obtain money, it will go some way towards pushing their bid over the line.
The most pressing necessity mentioned in the letter received from the Premier League this week is the return of a £158 million loan to MSP Sports Capital for the dockside work, so it is unclear whether that will also be addressed if a Blue Owl agreement is achieved.
That loan must be returned by the middle of next month for the takeover to go ahead so if this is a plausible avenue to 777 getting their hands on the requisite funds then they will need to have it in place as a matter of priority.
However, in addition to stadium funding and MSP loan repayment, the league requires money for the club’s running costs until the end of the season to be placed in an escrow account, as well as the loans Josh Wander and company have already provided, which are worth at least £150 million but could be worth nearly £200 million, to be converted into equity.
And, because the money came to 777 as loans in the first place, the firm may be required to repay them with interest, raising the cost of the takeover even before any funds are transferred to Farhad Moshiri for the sale.
So, even if the stadium elements are covered in combination with Blue Owl, the cost will remain high. And if Miami-based 777 has been unable to satisfy the Premier League thus far, it is unclear they will be able to do so in the coming weeks.
