According to Josimar, 777 Partners might have a new “avenue to funding” for the construction of the new Everton stadium.
It was doubtful that 777 could provide the funding to meet the “draconian” requirements set out in a letter from the Premier League after the American company’s attempt to raise capital via brokers Tifosy last year was “unsuccessful,” according to a spokesperson who claimed it had been put on hold and would only be restarted if they received Premier League approval for the deal. The outlet reported this via their website on March 23.
According to people close to the business, Blue Owl Capital, a purportedly “alternative investment asset management company” with assets under management of over $165 billion (£131 billion), may be a potential source of funding for 777.
However, according to Josimar, Blue Owl’s involvement will only be limited to finance the Bramley Moore Dock project; it will not be involved in the actual acquisition deal.
One of four Premier League requirements for Everton deal covered?
Providing proof of funds to cover the rest of the stadium build is one of the four key points that the league wants satisfied to grant approval, so if 777 have found a way to get hold of money to ensure that it would therefore go some way to getting their bid over the line.
The most pressing requirement detailed in the letter received from the Premier League this week is the repayment of a £158million loan to MSP Sports Capital for the dockside construction, so it is unclear whether that might possibly also be ticked off if a Blue Owl arrangement can be reached.
That loan must be repaid by the middle of next month for the takeover to go ahead so if this is a viable route to 777 getting their hands on the required funding then they will need to get it in place as a matter of priority.
The league, however, also demands that funds for the team’s operating expenses through the end of the season be placed into an escrow account and that the loans Josh Wander and company have already provided—worth at least £150 million but possibly as much as £200 million—be converted into equity. These requirements are in addition to stadium funding and the repayment of the MSP loan.
Furthermore, as the funds were first obtained through loans totaling 777, the company might have to pay back the loans with interest, raising the cost of the acquisition even before any money is sent to Farhad Moshiri for the actual transaction.
Therefore, even if Blue Owl were to cover the stadium components, it would still be a costly affair.
It’s also possible that Miami-based 777 won’t be able to get everything in place in the coming weeks if they haven’t been able to satisfy the Premier League thus far.
In other Everton news, in an effort to avert a “nightmare scenario,” the Premier League has committed to the club’s impending independent commission hearing.
