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Everton’s administration fears on hold after 777 granted loan repayment extension

Everton's administration fears with 777 takeover placed in doubt
Everton's administration fears with 777 takeover placed in doubt

The takeover of Everton by 777 Partners remains on a knife edge after a last-gasp extension was granted over the repayment of a £160 million loan to allay fears the club could be plunged into administration.

With hours remaining over a cut-off of midnight on Monday US time (Tuesday, 5am BST), Telegraph Sport has been told a deal has been struck over money owed by the club to MSP Capital and businessmen Andy Bell – founder of the investment platform AJ Bell – and George Downing.

The length of extension granted was said to be a question of “weeks not months”, with US investment firm 777 still aiming to complete its purchase of Everton towards the end of the season.

Talks with MSP were said to have been led by current owner Farhad Moshiri, who faced losing control of the club – and the sale process – unless an agreement was reached, with the loan said to be secured against 51 per cent of his stake.

There have been reports those owed money were also eyeing a share of Everton’s new £500 million stadium in lieu of repayment.

All this put at risk the takeover by 777, which is also now owed more than £160 million in loans paid to prop up the club after it agreed to buy out Moshiri for £500 million.

Pulling the plug on funding that will see Everton through to the end of the month would need someone else to step up to avert the threat of administration and a nine-point deduction that could see them relegated after they were docked eight points for breaking financial rules.

There were conflicting views over the prospect of insolvency, with one source telling Telegraph Sport Moshiri was committed to preventing the doomsday scenario, either by resuming bankrolling the club himself or finding another buyer.

Another source, however, described administration as a “very real possibility”, adding: “There are three or four main scenarios. The first one is the extension is granted but it’s granted with a price attached to it. That could be an additional payment to MSP. It could be equity. It could be more favourable loan terms.

“If it isn’t granted then MSP takes the equity and either tries to line up somebody else as a buyer.

“The third scenario is probably the administration scenario.”

Everton were already facing a wait until the season ends before any takeover by 777, which is scrambling to raise hundreds of millions of pounds to fund the purchase.

The latest lengthy delay over a takeover agreement struck with Moshiri almost seven months ago followed the issuing of an ultimatum by the Premier League, which imposed strict conditions on the proposed purchase by a firm that has faced accusations related to its ability to raise cash and its business practices, which it has repeatedly denied.

Those conditions include that it repays the £160 million loan owed by Everton, deposits £60 million into an escrow account for use by the club, converts loans it has itself made into equity, and proves it has access to sufficient funding to complete the construction of a new stadium.

The investment fund co-founded by Josh Wander and Steve Pasko is said to have approached a significant number of lenders to help bankroll the purchase, including Blue Owl Capital, a US-based private credit provider.

Meanwhile, the Premier League said Everton’s appeal over their latest points deduction, which was lodged on Monday, will be heard on an “expedited basis”.

The Premier League season ends on May 18, raising the possibility of relegation being decided by an independent commission should Everton finish in the bottom three by one or two points, only to be given those points back.