777 Partners make statement after club is taken off them
The American investment firm still seeking to acquire a controlling interest in Everton has criticised the decision of a court in Brazil to take control of one of the clubs they own away from them.
Miami-based 777 Partners, who struck a deal with Everton owner Farhad Moshiri back in September to acquire his 94.1% shareholding in the Toffees, provisionally lost control of one of the clubs in its football portfolio, Brazilian side Vasco da Gama, on Wednesday after a judge suspended the effects of the contract that saw 777 take control back in 2022, and called for an independent examination of accounting operations of the firm at the club.
777 Partners co-founders Josh Wander and Steven Pasko were removed from the board of directors at Vasco, while other 777 representatives including Nicolas Maya, Don Dransfield, and Andreas Blazquez are also understood to have been temporarily removed.
The decision of the courts preceded another legal twist at another club 777 owns as part of their multi-club portfolio, Belgian side Standard Liege, with the 777 having their football assets seized by a Liege court on Thursday over allegations of unpaid debts relating to the acquisition of the club.
Relating to the Vasco da Gama decision, a 777 Partners statement read: “777 Partners received with surprise and indignation, through the media, the decision, on a provisional basis, to remove the company from command of Vasco SAF.
“The injunction, issued overnight in a case in which we did not have access to the records to respond legitimately, is a legal aberration and puts into question not only the future of Vasco da Gama, but the Brazilian football system as a whole. We are international investors, we trust Brazil and the SAF Law, a project created to allow the recovery of large clubs through capital injection and professional management.
“Since the acquisition of 70% of Vasco SAF’s shares, we have not failed to comply with a single contractual clause with CRVG (the club), we have injected more than $310million into cash, an essential contribution to begin a project to rebuild the club. We formed a new Vasco, where the salaries of athletes and employees are paid on time, creditors are respected and debts are paid off, rare facts in Brazilian football.
“The reconstruction work is now suspended due to a monocratic decision, without any legal basis and motivated by the selfish desires of the new administration. The episode, even if preliminary, will certainly have negative effects on the football team.
“The legal uncertainty caused by this fact also threatens the future of Brazilian football. There is no doubt that it will have disastrous consequences for the SAF Law. The question that remains is: which company will have the courage to invest millions of dollars in a SAF with the risk of losing command power overnight at the stroke of a pen, without having committed a single contractual infraction?
“We deeply regret the bellicose and intransigent position of the new CRVG leaders, especially its president, who was never willing to discuss solutions for Vasco in the appropriate forum, the meetings of the SAF Board of Directors.
“While we were publicly attacked by the association’s new representatives, we continued working day in and day out for Vasco and honoring all our obligations. A week ago, for example, we announced the biggest sponsorship deal in the club’s century-old history.
“We want to reaffirm our commitment to Vasco and its huge fans, as soon as the conditions for the club’s reconstruction process are reestablished, with the reversal of the decision.
“We reiterate our confidence in Justice and the laws of Brazil and we are absolutely certain that the absurd injunction will be overturned when 777 Partners is notified and can present its defense in the process.”
The proposed takeover of Everton by 777 Partners has been mired in controversy, with the American firm having faced a number of legal issues relating to unpaid debts, while last month an Australian budget airline it owned, Bonza, went into voluntary administration.
Earlier this month also saw a $600m case filed in a civil court in New York by a London-based lender, Leadenhall Capital, who have made allegations of fraudulent practice by 777 Partners.
In March, the Premier League informed 777 Partners that they were “minded to approve” its bid to take over at Everton, provided four conditions were met.
Those conditions were that 777’s interest-bearing loans to Everton, which now sit at a little more than £200m, have to be converted into equity; funds are required in an escrow account to meet financial obligations for the remainder of the season; proof of funding for the new stadium completion; and a £158m loan to be repaid to MSP Sports Capital.
777 were granted an extension to the maturity date of the MSP loan, which was on April 15, but that extension is ‘weeks not months’ according to sources.
It was reported earlier this week that Moshiri had extended the time for 777 to find the necessary capital to complete the deal until the end of the month, although sources the ECHO has spoken to have said that the initial agreement was until the end of May already and that Moshiri had privately pivoted and was now looking at alternatives, with the landscape having shifted considerably with regards to 777’s suitability as owners of Everton since the Premier League gave its conditional approval back in March.
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