Everton’s 777 takeover has fallen through – so what happens next?

A version of this article was first published on May 9. We are republishing it today with the news that Everton have confirmed 777 Partners’ proposed takeover has fallen through following the expiry of the purchase agreement.

Nobody really knows the origins of the phrase “the penny dropped” — it is something to do with old slot machines or public toilets, apparently — but everybody can spot it when it happens.

The civil suit filed by London-based investment firm Leadenhall at the start of May against, among others, 777 Partners, the Miami-based investment firm with whom Everton owner Farhad Moshiri has been negotiating for over a year.

In the suit, 777 was described as a “house of cards”, with Everton “the latest shiny object” of 777 boss Josh Wander’s “fraudulent scheme, solvency aside”.

777 declined to comment but, for everyone else, the implications feel clear. Perhaps Moshiri, too, is finally getting his head around the idea that these 777 chaps might not be able to close the deal he agreed with them in September. And if he needed a further nudge, this week (May 10) it has emerged 777 has called in restructuring experts.

In a memo which The Athletic has seen, staff were told that “a team of professionals from B Riley Advisory Services” had been retained to help 777 get through “various operational challenges”. B Riley Advisory Services is a division of B Riley Financial, a Los Angeles-based financial services known for its expertise in turning around or liquidating failing companies. 777 declined to comment.

On June 1, Everton confirmed in a statement that: “The agreement between 777 Partners and Blue Heaven Holdings Limited for the sale and purchase of the majority shareholding in the club expired today. The club’s board of directors recognises the considerable level of financial support 777 Partners has provided the club over recent months and would like to take this opportunity to thank them for this.”

So this penny has taken a while to drop, but now that we are all on the same page, let us consider what is likely to happen next.

The following are the four most plausible scenarios that Everton face in the coming months, in ascending order of likelihood. A warning (and potential spoiler): if you only want good news, skip to the last one…

777 finds the money

Despite everything, there is still a greater than zero chance that 777 boss Wander persuades someone to lend him the money he needs to satisfy the conditions the Premier League placed on its approval of this deal. The period of exclusivity has expired meaning Everton can discuss a deal with other potential buyers but 777 has put a significant amount of money into the club and retains a relationship.