Everton takeover latest as 777 Partners make stance clear to Farhad Moshiri
US investment firm 777 Partners has left Everton after Farhad Moshiri struck an exclusivity deal with MSP Sports Capital on Monday.
Miami-based company 777 had been in talks with Toffees owner Moshiri for the past few weeks for an investment deal and possibly a majority stake in the club as the company sought to add more clubs to a growing portfolio of football clubs that includes Vasco da Gama and Standard include Liege, Hertha Berlin, Red Star FC, Melbourne Victory and Sevilla.
It was reported last week that Moshiri had agreed non-binding, conditional deals with both 777 and MSP, with the two parties offering the Toffees owner very different investment options while he tried to find the final tranche of financing to build the stadium at Bramley – Moore Dock.
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US sources familiar with the matter told ECHO on Wednesday that 777 Partners had now left Everton after Moshiri decided to switch to New York-based MSP, which appears to have a stake of 20 They will invest in the club through a preferred stock structure, meaning they will not hold equity in the club but will provide the financing Moshiri is seeking, albeit at interest.
MSP will have the option to convert the preferred stock into equity at a later date if desired, and while preferred stock does not carry voting rights, it is understood that MSP will likely have some members of its executive team given the way the company operates, the board of directors is focused by Everton insist on having some level of operational control over their investments.
While Moshiri’s entering into an exclusivity agreement with MSP may seem to automatically terminate all other interests, the time limit, which is typically 30 or 60 days, allows full due diligence to be performed and negotiations to proceed without this additional pressure from potential competing offers is required. However, it is not a binding agreement that guarantees that an agreement will be reached.
Moshiri struck an exclusivity deal with consortium Peter Kenyon/John Thornton/Maciek Kaminski last summer, with talks centered on a full takeover of the club. No agreement was reached and the exclusivity period ended with the breakdown of negotiations between the US consortium and Moshiri.
777 are understood to now focus on other investment opportunities, with Moshiri and Everton focused on striking a deal with MSP in the near future, with both parties interested in a positive settlement.
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