Everton buyers 777 Partners facing more issues at Vasco – On a collision course with Brazilian club
08/05/2024 17:00
777 Partners are facing yet another problem with one of their clubs as their efforts to take over Everton hit the rocks.
That's at least according to Brazil’s GE Globo, who report that a battle for Vasco de Gama is set to develop thanks to the Leadenhall court case from America.
777 Partners are being sued in America by Leadenhall Capital Partners, who have accused the group and other partners of a years long fraud of €350m relating to assets used as collateral.
That lawsuit has led to various problems for 777 Partners, who own several football clubs around the world and various other businesses but are currently putting out fires at all of them.
That's hampered their efforts to buy Everton, who they have been locked into negotiations with for months as Farhad Moshiri looks to sell the club.
777’s deal has hit the rocks over the past fortnight thanks to the issues arising from the Leadenhall case, while various reports have detailed issues at Standard Liege and Vasco.
The latest development at the latter, according to GE Globo, is that 777 Partners find themselves on a collision course with the management at the Brazilian club.
Vasco's legal department notified 777 Partners on Monday, questioning the possible transfer of control of the club to the insurance company A-CAP.
The club's representatives believe that such a move, which would transfer ownership of the club directly or indirectly, violates Brazilian law, enacted in 2021 by the Federal Government. It would also violate the shareholder's agreement between Vasco and 777 Carioca, the company created to manage the club in the sale and purchase agreement of the club.
That deal included a bond between 777 and Vasco that serves 'as a kind of protection' against a change of control, whether direct or indirect, and ensures any such deal can be vetoed.
GE Globo explains this in more detail, detailing that if 777 Partners no longer belonged to Josh Wander's group but to Kenneth King, the owner of A-CAP, the company could face penalties if they have not informed the club's partners and the CBF of the change of control.
A-CAP has denied it has taken control of 777 Partners and called the accusations "unfounded and a desperate attempt by Leadenhall to seek payment from A-CAP while harming A-CAP policyholders."
That was directly contradicted by comments from Wander, though, who admitted in a meeting on April 2nd that A-CAP are in control, at least according to Leadenhall's lawsuit.
It is yet another problem that 777 Partners need to resolve, with those in charge at Vasco believing there has been a breach of various agreements in place at the club.
They are seeking clarification on the matter, with the law potentially broken if 777 Partners have transferred the club to A-CAP.
That, coupled with the developing situation at Standard Liege, is yet another warning for Everton and Moshiri, who once again must be questioning whether it is viable to continue their links to the American group.
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