Everton: 777 Partners best solution to £330m debt crisis – Footymercato.com
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The debt at Everton is set to reduce by at least half if 777 Partners have their takeover deal approved by the Premier League.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that he has “huge reservations” over 777 Partners as owners but, in what many view as a surprise given the torrent of criticism at the investors, believes they are the best solution to solve the club’s growing debt.
Everton published their full 2022-23 accounts at the end of March revealing losses of £89million.
The club’s debt has soared up to £330million as a result of their continued borrowing – including £200million from prospective owners 777 Partners.
As revealed by Football Insider, 777 Partners are now “bullish” about their takeover being completed but they face a huge hurdle.
The Merseyside club have already faced two points deductions this season after receiving a two-point deduction this week for a second PSR breach.
Everton can solve £330m debt issue with 777 takeover
Maguire explained that 777 Partners will turn their owed debt into equity if they take majority control of the club and therefore it is not a major concern.
“No, I don’t think the £330milion of debt will be a huge concern,” Maguire told Football Insider’s Sean Fisher.
“My understanding is that one of the conditions for 777 Partners to acquire Everton is that they will have to convert their loans into equity.
“That would immediately halve the extent of Everton’s borrowing.
“I think they will also try to wait for Bramley Moore Dock to increase revenue generation.
“So while I have huge reservations with regards to 777 Partners – from a debt perspective they are a positive.“
In other news, Everton face third points deduction as Kieran Maguire drops bombshell
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