If 777 Partners decides not to continue backing Farhad Moshiri, new money may be heading to Everton, as reported by The Times.
Although the public has known about the Toffees’ financial problems for a few years, they have come to light this season.
Sean Dyche’s team is now much more involved in the relegation struggle as a result of a points deduction they suffered earlier in the season.
Although 777 Partners have assisted Moshiri, the club’s current owner, in covering daily operating expenses, their assistance may not last indefinitely.
In the worst-case situation, Paul Joyce has now written on The Times website (5 April) that Moshiri would consider a different option.
“There is a multi-million dollar question about what happens if 777 falls by the wayside,” he stated. Thus far, it has disbursed between £180 and 200 million in loans to meet the club’s monthly operating expenses. Someone else will have to write a £30 million pay check every four weeks to cover staff, player, and stadium expenses if it ceases giving funding.
“Moshiri’s plan B, if there is one, is unclear. There is interest from another American group, which does not have a sporting background but is believed to be cash rich, but they remain in the shadows.”
The question that Everton fans will be discussing alongside this news is who this group is and what they will look to do. This remains unclear.
What Joyce did confirm was who the club owes money to: “Downing and Bell, who are owed about £50 million, act as security agents on the new 52,888-seater stadium and saving that project would require a payment to constructors Laing O’Rourke at the end of the month as part of a fresh commitment north of £100 million.”
How could this new potential investment affect Everton?
As it stands, the club is being kept afloat by its current investors, 777 Partners who are virtually paying all of the operating costs. Without them, some problems could be around the corner.
Although Joyce suggests that there could be interest coming from America, this doesn’t appear to be a guarantee for the future.
The prospect that the Toffees owe potentially over £150 million for their stadium currently in itself is a huge concern.
Given that Dyche has managed to guide away from the bottom three (despite going on a club-record winless run) there will be some additional funds coming in by the way of prize money and TV deals which may help.
In an ideal world, 777 stays and helps to support Everton and Moshiri where they can but new investment is going to be necessary.
The debt is something that is off-putting to new buyers and this report doesn’t suggest any improvement any time soon.
