Everton takeover rescue talks dismissed as unbelievable as 777 Partners seek funding

The Esk has dismissed reported 777 Partners talks with a potential Everton takeover rescuer as impossible to believe in.

The Toffees blogger reacted via Twitter on 2 May after Bloomberg reported that the American company were in discussions with New York-based GDA Luma Capital, who are said to be offering funding for the club’s working capital and new stadium contruction.

The distressed debt specialists are led by the co-chair of Cirque du Soleil’s management company, Gabriel de Alba, but The Esk “can’t believe” any private equity firm would invest in 777 at this stage.

He wrote: “Appreciate the research that goes into a story like this but I can’t believe for a second any credible PE company would consider a 777 investment at this time, no matter how distressed.”

Everton takeover rescue talks to fail once more?

The Esk has made his view of 777 and their chances of taking over at Goodison Park very clear over the months they have been trying, and failing, to do so.

After the Miami-based outfit were unable to meet the MSP Sports Capital loan repayment deadline on 15 April, and then were four days late in providing their ongoing working capital funding to the club this week, recent events do create valid doubt that they can get the financing together to satisfy the Premier League’s conditions. University of Liverpool finance expert Kieran Maguire has also pointed out how lenders are demanding high interest rates or refusing to work with 777 at all, having deemed the company to be risky after their deadline extension. So there are bound to be questions about how onerous the conditions of the potential financial support from GDA Luma might be.

But in the current context it would appear to be something of a breakthrough for 777 to even be in realistic talks with a company that could feasibly rescue their takeover bid, so the next developments will be crucial.

Whether success for Josh Wander and company is positive news for the club is another question, with unpaid bills and protests at other clubs they own [Telegraph, 15 September] throwing up a number of red flags in recent months, although questions over the identity of alternative options currently make it hard to assess who the safest choice would be.

In other Everton news, a key Toffees star has considered leaving the club as the takeover saga may now force his sale.