Everton could be plunged into administration as 777 partners are yet to pay the £160m loan.
According to a report from The Telegraph, the Toffees takeover is on “knife-edge” ahead of the Monday US time (Tuesday, 5am BST) deadline.
The US investment firm was seeking an extension to the deadline last week, but as of now, there has been no solution. Everton could face massive problems if the loan amount is not paid on time, and going down the administration route is a possibility.
Farhad Moshiri has been directly involved in talks, but the takeover cannot go through unless the 777 Partners come up with the funds (£160m in loans paid to prop up the club after it agreed to buy out Moshiri’s shares for £500m).
The Merseyside club have already suffered point deductions twice this season, and if it goes to administration, they will further lose nine points, and that could see them relegated.
One source told the newspaper that Moshiri is “committed to preventing the doomsday scenario,” either by bankrolling himself or finding another buyer. However, other sources have indicated that the administration is a “very real possibility.”
The Premier League has yet to give the green signal for the takeover to go through. They have issued an ultimatum over the lengthy delay in the takeover agreement struck with Moshiri.
The report adds: “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.”
Everton fans do not deserve this misery
The fans do not deserve this misery. It is becoming increasingly clear that the 777 Partners do not have the requisite funds to run a football club, and the Premier League has made the right decision by not granting them takeover permission.
Earlier today, the Toffees have made an appeal over their second point deduction. They want one point to be deducted now and the one to be deferred next season which will give them the breathing space to fight for Premier League survival. The Toffees have already lost eight points this season for breaching the FFP threshold.
It is unthinkable that Everton will go into administration, which would result in relegation. That would be a disaster for the club. While Moshiri remains committed to avoiding that scenario, the uncertainty around the club is hurting everyone.
Everton are two points above the relegation zone and face Chelsea away to Stamford Bridge on Monday night.
