Can we take a moment to laugh heartily at Everton?

[allatsea]

The PL don’t have the power to stop a takeover. The only power they have is the fit and proper persons test which 777 haven’t passed as they haven’t satisfied the three stipulations the PL have set out



777 won’t pass it because they have had 7 months to provide evidence to the PL that they have the funds and have until the end of this month to do it now after being given more time.


They’ll be well down the queue of people to get their money back and more than likely won’t

So if I have understood you correctly 777 could buy Everton (somehow) and then fail the "fit and proper" test ? If that is correct surely the PL/FA have advised 777 they are likely to fail the 'fit and proper' test so why are they apparently still putting money into Everton and why are they apparently still trying to buy them ? Doesn't make sense to me.

 

[SirHarryHotspur]

When the regulator comes into being will the following be enforced , will we get owners barred..


To address corporate governance issues in football, the Regulator will establish a compulsory ‘Football Club Corporate Governance Code’.
To date, the poor internal governance at some clubs has allowed owners to act unilaterally, pursuing short-term interests with little accountability or scrutiny. Under the new regulatory system, clubs will be required to apply a new code and report on how they have applied it, to improve transparency and accountability. The code will be applied proportionally, with regard to the size, league and complexity of the club’s business model, and where risk may exist as a result of weak corporate governance.

 

[spursfan77]

So if I have understood you correctly 777 could buy Everton (somehow) and then fail the "fit and proper" test ? If that is correct surely the PL/FA have advised 777 they are likely to fail the 'fit and proper' test so why are they apparently still putting money into Everton and why are they apparently still trying to buy them ? Doesn't make sense to me.

No.

They can’t stop a takeover and can’t stop them putting money in via loans for the stadium. .

They have put in three rules to satisfy for the fit owners test, none of which 777 have yet to do. If they had, they would own the club.

 

[easley91]

This stuff goes way over my head. Can Everton go into administration if the takeover doesn't happen?

 

[Tucker]

This stuff goes way over my head. Can Everton go into administration if the takeover doesn't happen?

Looks like the loans from 777 pending their take over are the only thing stopping them going into administration.

They’re fucked.

 

[easley91]

Looks like the loans from 777 pending their take over are the only thing stopping them going into administration.

They’re fucked.

Didn't realise it was this bad.

 

[allatsea]

No.

They can’t stop a takeover and can’t stop them putting money in via loans for the stadium. .

They have put in three rules to satisfy for the fit owners test, none of which 777 have yet to do. If they had, they would own the club.

Thanks.

Again if I have understood correctly the FA/PL cannot stop a takeover but they can stop Everton continuing to play in the PL if/when 777 fail the 'fit and proper' test ?

 

[MR_BEN]

I’ve been following it from the start and I’ve been surprised that the mainstream papers haven’t been on it for ages and instead have been focusing on the points deductions. This is a much bigger story and affects the club to a much larger degree than losing a few points.

It is fascinating and goes back years really with Moshiri and Usminov and who was really putting the cash in to finance the club. The Guardian did an article on it 4/5 years ago. It’s just a house shame Usminov didn’t get arsenal because they’d be proper fucked if he did and would possibly be going through something similar.

Moshiri doesn’t want to lose his money though obviously and is so wedded to 777 because of that. Someone is going to lose out and I suspect it will be ultimately the fans in the end as the club could go under. Once in administration or insolvency though it allows a purchaser to come in and pick them up a lot cheaper. I suspect a lot of people are hoping that happens and they can pick up a PL club on the cheap with a brand new stadium almost delivered.

If somebody buys them when in administration - they still have to take on the debt. Best they can hope for is agreeing a reduced settlement with creditors and banks.

The prospective owners also have to be able to pass the fit and proper persons test, and believe they will be able to get the club out of this PSR cycle.

With the amount of debt in place, the cost of debt - and a club that is basically running insolvent, selling the club even through administration will be incredibly difficult.

 

[MR_BEN]

Looks like the loans from 777 pending their take over are the only thing stopping them going into administration.

They’re fucked.

Not just 777. There is also £160m in loans from MSP (previous potential buyers), which they recently had to get extended terms on as they had become due in full and Everton couldn’t settle.

 

[RJR1949]

If somebody buys them when in administration - they still have to take on the debt. Best they can hope for is agreeing a reduced settlement with creditors and banks.

The prospective owners also have to be able to pass the fit and proper persons test, and believe they will be able to get the club out of this PSR cycle.

With the amount of debt in place, the cost of debt - and a club that is basically running insolvent, selling the club even through administration will be incredibly difficult.

Someone buying Everton out of administration would only have to honour the “football debt” that is the moneys owed to other clubs and players. The other lenders to the club stand to lose their money - they would have first call on whatever is raised from selling the club and new stadium with different lenders having different priorities for repayment.

Any administration will be complex and take much time to resolve.

 

[Misfit]

Doesn't administration also mean relegation, or is that only in certain circs?

 

[UncleBuck]

Not just 777. There is also £160m in loans from MSP (previous potential buyers), which they recently had to get extended terms on as they had become due in full and Everton couldn’t settle.

Sorry, so that’s £180m from 777 and £160m from MSP that Everton (Moshiri) have borrowed just to keep running for the last two and a half seasons?
What I don’t understand is if Moshiri was unable to support the club why did he then double his shareholding in 2022 to 94%?
What did Moshiri gain or hope to gain by his purchase in 2022 if the club was already in such a precarious position?

 

[Tucker]

Doesn't administration also mean relegation, or is that only in certain circs?

Automatic 9 point deduction.

 

[SirHarryHotspur]

From the gossip columns, maybe this lot would be better owners, Levy would have scared them off with our asking price.

Meanwhile, US firm MSP Sports Capital, who showed interest in buying Tottenham last year, are said to be waiting in the wings with a bid for the Toffees if the 777 Partners deal collapses.

 

[dovahkiin]

Everton withdraw appeal against two-point deduction but further penalty threat looms

Club have taken pragmatic view after securing safety from relegation despite the six and two-point sanctions

www.telegraph.co.uk

 

[easley91]

Of course they accept it after safety secured.. Real noble of you there lads.

 

[Frozen_Waffles]

I imagine if they do go into administration Levy will be on the phone straight away to "help" them with the Richarlison deal.

More money up front and less overall would be my guess.

There is also an opportunity to pick up a few of their players as well...

Branthwaite, Garner and McNeil would be my choice. I imagine we'll be circling. We probably don't need Branthwaite but the other two could be very useful.

 

[superted4]

I imagine if they do go into administration Levy will be on the phone straight away to "help" them with the Richarlison deal.

More money up front and less overall would be my guess.

There is also an opportunity to pick up a few of their players as well...

Branthwaite, Garner and McNeil would be my choice. I imagine we'll be circling. We probably don't need Branthwaite but the other two could be very useful.

Never thought of that possibility. Think he did something similar with Southampton and the Bale transfer fee

 

[Yid-ol]

I imagine if they do go into administration Levy will be on the phone straight away to "help" them with the Richarlison deal.

More money up front and less overall would be my guess.

There is also an opportunity to pick up a few of their players as well...

Branthwaite, Garner and McNeil would be my choice. I imagine we'll be circling. We probably don't need Branthwaite but the other two could be very useful.

Or even look to buy the not finished stadium, to loan it back to them to play in each season

 

[MR_BEN]

Someone buying Everton out of administration would only have to honour the “football debt” that is the moneys owed to other clubs and players. The other lenders to the club stand to lose their money - they would have first call on whatever is raised from selling the club and new stadium with different lenders having different priorities for repayment.

Any administration will be complex and take much time to resolve.

Incorrect - It would be all debts. Not just football debts.
Administration is just a process - it’s does not absolve the company of any debts.

Administrators may negotiate with creditors to try to agree to a discount / write off / reduction of debt, but creditors aren’t obliged to accept. And given any buyer would have very deep pockets, they would be very foolish to accept.