Everton bring in financial insolvency experts amidst 777 struggles

30/04/2024 20:03

The US-based investors are struggling to come up with the cash to keep the club running

While Everton seem to have handled affairs on the pitch, behind the scenes the financial turbulence around the club continues to swirl dangerously. Reports today indicate that the club has now brought in an advisory firm to help navigate the Toffees through their current fiscal struggles.

The club has a serious solvency issue in that majority shareowner Farhad Moshiri appears no longer able to run the club — or is simply disinterested in sinking more money into a project he has washed his hands of. US-based investors 777 Partners have been in the process of taking over the club, but their own financial issues mean they have been unable to get the Premier League's unanimous approval to close the deal and the matter has now dragged on for months.

Another American consortium that had once shown interest in purchasing the club outright — MSP Holdings — provided 777 with a £160 million loan to keep the club afloat. The repayment for that loan was scheduled for the middle of this month and 777 had to ask for an extension on that as they were struggling to come up with the funds.

Meanwhile, with the club barely able to stay afloat with day-to-day running expenses, 777 were supposed to provide EFC with another £15m for the month of April. Whether the full amount was deposited or not, 777's official stance through their spokesperson is that "the club has been provided with the working capital it needs as of today [Tuesday]", without going into further detail about if the full sum had been provided.

The Daily Mail reported in the last couple of hours that the sum that was due last Friday has finally been raised, with £16m provided for the club to pay next month's wages.

The Guardian goes on to report that Everton have brought in Teneo — a US-based global consulting, strategy & communications firm with large insolvency division — to advise the Board on the best approach to keep the club running while 777's purchase bid has founders among the rocks.

If for any reason Everton Football Club ends up having to declare insolvency before the season is over on May 31st, they will be put under administration which comes with an immediate nine-point penalty. Depending on how things shake out with the appeals for Everton's and Nottingham Forest's points deductions as well as what points Forest and Luton Town can gather in their three remaining games, the threat of relegation might not be over for the Toffees.

At the moment, the Blues will need to treat their three remaining games at Luton Town, versus Sheffield United and away at Arsenal on the final weekend with utmost importance so that should the unthinkable happen with administration, they will at least still remain in the Premier League first and foremost.