26 May 2024 11:06:05
It is possible that 777 Partners will seek Chapter 11 bancruptcy protection whilst it re-organises the business. However, they could be forced down the Chapter 7 route which will see a Trustee (like an Administrator) take over a recover all debts and sell all assets to distribute to pay debts of their own.
This would put Everton at huge risk and needing to find £210M or more quickly to repay 777 Partners. The value of the total debt will mean that Moshiri may need to sell the club for a nominal amount (say £1) to a buyer willing to take on the immediate £600M worth of debt owed to third parties.
Moshiri will also need to write off the further £450M owed to him in loans or stike a deal for payment down the line somewhere. MSP are able to take control of either the new stadium or 51% of Moshiri's shares if the club cannot service the £159M debt with them.
Rights and Media Funding, who blocked the investment proposed by MSP last year, are owed £225M secured against Goodison Park and the other assets the club owns.
I cannot see 777 Partners taking over the club. MSP would be a good solution but will be wary of taking over the huge debt. A suggestioin that John Textor would look to take the club in to the same group as Lyon and Botofogo is credible.
However, it is not something that could happen overnight as he is a part owner of Crystal Palace and would need to sell on first, then go through the whole process to obtain approval from the Premier League, FA and the Financial Conduct Authority during which time the club can only accrue more debt or enter Administration whilst they wait.
Right now, the club will have to find a way to restructure at least some of the debt or head in to Administration during the close season. For me, the best solution Everton can look for would be an MSP takeover who would have to look to agree with those owed money to restructure all of the debt in exchange for interest payments whilst the debts are cleared. This would likely involve selling the new stadium and renting it back.
26 May 2024 12:41:25
Out of everything I hope we don't lose the stadium. That's the one thing that could save us financially, eventually.
{Ed002's Note - There is no money to finish it and debt is already secured against it unfortunately.}
26 May 2024 13:11:17
Very grim indeed. And here's us lot worrying about playing pretty football!
26 May 2024 13:10:44
Blimey that is very worrying thank you ed 002 for the feedback last few months on the current financial ruins of our club its a shame are owner hasn't communicated with fans unlike yourselfs who have provided us with latest updates and news so thank you to all eds and hope everyone has good summer.
26 May 2024 15:38:59
I thought Chelsea and man city don't? I've just looked on other websites and all of them have different answers
Think I will just forget I ever looked Ed.
{Ed002's Note - Chelsea own their stadium. Newcastle do, and so do Forest.}
26 May 2024 15:58:12
Thanks ed. More misinformation on the web.
26 May 2024 16:13:19
Hi Ed002
Quick question on the administration route that you’ve mentioned above -
If the club go into administration during the closed season, what are the chances of it being resolved before the new season kicks off again? Therefore what would be the scenarios surrounding administration in terms of points deductions etc
Very grim reading though, and certainly very confusing for me.
{Ed002's Note - Nothing will be resolved that quickly as it takes time to go through the approval process unfortunately. It would also mean starting next season on minus nine points. Critically it gives the club breathing space to try and sort themselves out.}
26 May 2024 19:10:09
Thanks Ed
Given the mess the club is in, it sounds like minus points tally to start the season seems likely.
{Ed002's Note - It is not a great situation sadly.}
26 May 2024 19:49:31
Very sobering info Ed02 - thanks for the update. Let’s hope MSP can ride to our rescue and sort us out. Maybe even get Textor involved in the future though I’m assuming that is unlikely as it will be a choice of one or the other.
It’s hard to believe player wages and paying off managers alone has caused this problem - it really must have been clueless members at board level. The new stadium should have been financed properly and the money secured before getting so far into the build.
Do you think it could be possible to buy the stadium in the future as part of the deal they strike?
I just want an end to this madness and for the club to move on and back to a sustainable business. Once we can focus on playing and not off-field antics I’ll be happier.
{Ed002's Note - I am 100% behind you and my buddy Ed025.}
27 May 2024 13:37:50
Great update on what's going on, cheers ed002.