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.
Is one of the four Premier League standards met by the Everton deal?
One of the four requirements the league must meet in order to approve a bid is proving they have the money to pay for the remaining stadium construction. If 777 can secure funding to meet this need, that would help their proposal get approved.
Repayment of a £158 million loan to MSP Sports Capital for the dockside building is the most urgent necessity listed in the letter received from the Premier League this week. It is unclear if that could also be completed if a Blue Owl agreement is reached.
If this is a feasible way for 777 to obtain the necessary funds, they must put it in place as soon as possible. The loan must be paid back by the middle of the next month in order for the takeover to proceed.
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.
