Farhad Moshiri’s chaotic reign as Everton’s majority shareholder took a significant step towards reaching its inevitable conclusion on Friday when the club announced that the British-Iranian businessman had agreed to sell his entire stake-holding to American investment firm 777 Partners.
Moshiri became a shareholder in 2016 and then majority shareholder two years later, with his stake accounting for 94.1 per cent. Takeover talks with the Miami-based investment company advanced following the recent collapse of a proposed equity deal with MSP Sports Capital, another American firm.
Signing an agreement with 777 partners, who were founded by Josh Wander and Steven Paso in 2015, secures the funding to complete the 52,888-capacity stadium at Bramley-Moore Dock, Moshiri claims.
The deal remains subject to approval from the Premier League, Football Association and Financial Conduct Authority and could take up to three months to complete.
If finalised, it would bring an end to Moshiri’s seven-year spell at Everton which has become increasingly troublesome, dysfunctional and fraught.
Over £750 million has been invested during Moshiri’s time in charge but the club has gone backwards. They narrowly escaped two successive relegation battles and are without a win in the new Premier League season.
An inconsistent approach to player transfers and churning through managers has not only left Everton fighting for an identity but also contributed to them racking up debts of over £430 million in the last five years. They will appear before an independent commission in October over an alleged breach of Financial Fair Play rules.
Supporters have long since turned on Moshiri and the board he put in place. Chief executive Denise Barrett-Baxendale, chief finance and strategy officer Grant Ingles and non-executive director Graeme Sharp all left their boardroom roles at the end of last season having not been able to attend games at Goodison Park due to a perceived threat to their safety.
Meanwhile, Bill Kenwright remained as chairman at Moshiri’s request but his time at the club would likely come to an end under new ownership.
In a statement, Moshiri said: “The nature of ownership and financing of top football clubs has changed immeasurably since I first invested in Everton over seven years ago.
“The days of an owner/benefactor are seemingly out of reach for most and the biggest clubs are now typically owned by well-resourced PE firms, specialist sports investors or state backed companies and funds.
“I have been open about the need to bring in new investment and complete the financing for our iconic new stadium at Bramley-Moore Dock, on the banks of the Mersey, which I have predominantly financed to date. I have spoken to a number of parties and considered some strong potential opportunities.
“However, it is through my lengthy discussions with 777 that I believe they are the best partners to take our great club forward, with all the benefits of their multi-club investment model.
“As a result of this agreement, we have an experienced and well-connected investor in football clubs who will help maximise the commercial opportunities, and we have secured the complete financing for our new stadium, which will be the critical element in the future success of Everton.
“Today is an important next step in the successful development of Everton and I look forward to closely following as our club goes from strength to strength.
“Of course, none of this could have been achieved without the hard work of everyone at the club. From our team at the training ground, our commercial and support teams through to matchday employees, I extend my sincerest gratitude.
“And to our fans, the last few years have been challenging but you have supported the club through it all and consistently been our 12th man. You are the best fans and deserve success.”
777 Partners currently own, or have shares in, Genoa in Italy, Belgium’s Standard Liege, Hertha Berlin of Germany, Sevilla in Spain and Brazilian club Vasco de Gama. However, the company has faced protests from supporters about the way its clubs have been run.
Regarding the prospective deal, 777 said: “We are truly humbled by the opportunity to become part of the Everton family as custodians of the club, and consider it a privilege to be able to build on its proud heritage and values.”
'No impact on manager or players yet'
Everton currently sit 18th in the league having collected just one point from their opening four games this season. Speaking about the takeover ahead of Sunday’s home game with Arsenal, manager Sean Dyche said: “There is no impact on me at the moment or the players.
“I was aware something may be happening. There is ongoing checks from the Premier League and alike so that will take some time.
“It will be interesting to see their view. The business side and stadium — they are things to be looked at when it’s signed and sealed and tied up.”
Everton defeated Arsenal 1-0 in Dyche’s first game in charge last season and have a good home record against the north London club in recent years. Mikel Arteta, a former Everton captain, has lost on each of his three visits to his old club since becoming Arsenal manager in 2019, and Everton are unbeaten at Goodison since 2017.
“We want performance levels to be high and work ethic needs to be good — especially against sides like Arsenal,” Dyche said.
“Then we have to have our key movements, when the team is in good shape and committed to the cause. (In my first game) everyone was playing on the edge and I want them to do that all the time.”
Sunday’s game will also be the first opportunity for the home supporters to get a glimpse of their new striker, Beto, who was signed from Udinese last month.
“He has added a different feel [to the squad],” Dyche said. “He is quiet but the way he trains, he wants to take it on. Very open minded and we want him to build on that. You want players to be polished, but not lose that raw edge.”