American investment company 777 Partners acquired the English football club Everton
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American investment company 777 Partners has completed the acquisition of the English Premier League (EPL) club Everton. Neither the new owner nor the previous owner, Farhad Moshiri, provided financial details of the transaction. However, Reuters sources say the club has been sold for £550m, given that Everton’s own accounts for the previous four reporting periods showed it had suffered losses in excess of £400m, and that Mr Moshiri had the team spent £750 million on it, it turns out that the former owner of the club actually recorded losses on investments.
On Friday, the owner of the English Premier League club Everton, Farhad Moshiri reported, that he sold the team to the American investment fund 777 Partners. The latter is widely known in the sports market. In particular, 777 Partners owns a 15% stake in the Spanish football club Sevilla, the investment fund owns almost 100% of the shares of the Italian Genoa, 100% of the shares of the Belgian club Standard and almost 65% of the German club Hertha. 777 Partners made all of these acquisitions over the past five years.
“The days when clubs were owned by individuals or beneficiaries appear to be largely gone,” Farhad Moshiri said in a statement. “The largest clubs are now usually owned by well-endowed private equity funds or government-backed companies.”
According to Moshiri, during lengthy discussions with 777 Partners, he came to the conclusion that the fund was the best choice for the further development of “our great club.”
As for the “greatness” of Everton, Mr. Moshiri embellished the situation a little. Everton last won the English Championship in 1987 (the Liverpudlians have won a total of nine titles since the end of the 19th century), and the team’s highest achievement on the international stage was winning the UEFA Cup Winners’ Cup in 1985. In the current championship, Everton is in 18th place. That is, it is in the relegation zone from the nuclear submarine.
Be that as it may, Premier League teams remain in high demand in the world of investors. Participants in the Everton purchase and sale transaction did not specify its financial terms. But, according to sources Reuterswe are talking about the sale of the team for £550 million. For comparison: last spring, American entrepreneur Todd Beley bought Chelsea for £4.25 billion. And the Glazer family, which owns Manchester United, has been selling the club for more than a year and is asking about £6 billion for it. However, no one has yet given the asking price.
We also note that Moshiri’s era (he entered the club’s capital in 2016, and received full control over it two years later) can hardly be called successful. In total, the entrepreneur invested about £750 million in the club. This, however, did not help the team either sportingly or financially. Over the past five years, Everton has consistently reported losses. In the 2021/22 season, they reached £44.7 million. In total, the club’s losses since 2016 amounted to £430 million.
Let us add that now, after the sale of Everton to 777 Partners, exactly half of the 20 Premier League clubs belong to American owners.
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