The potential takeover of Everton by 777 Partners is set to proceed as planned, despite a recent credit rating downgrade by AM Best, a prominent US credit rating agency. This downgrade, which lowered 777’s financial strength from “excellent” to “fair,” has raised questions about the firm’s ability to fund the purchase of the football club. However, sources close to the situation have confirmed that the credit rating downgrade is unrelated to 777’s capacity to finance the Everton takeover and will not significantly impact the deal.
The Miami-based investment firm, 777 Partners, has remained on track to finalize the takeover by December, maintaining its commitment to the acquisition. In September, Farhad Moshiri, the current owner of Everton, agreed to sell his 94% stake in the club to 777 Partners. Typically, such transactions take approximately 12 weeks to complete, and 777 has diligently submitted all required documentation to the relevant authorities, including the Premier League, the Financial Conduct Authority (FCA), and the Football Association (FA), awaiting their approvals.
AM Best, known for its expertise in the insurance industry, placed 777 Partners’ credit rating under review with “negative implications” and suggested the possibility of further downgrades. The report also noted that 777 Partners had not provided audited financial statements for the past two years, which raised concerns among investors and observers.
Despite the rating concerns raised by AM Best, it’s important to highlight that 777 Partners’ ability to fund transactions in other sectors, such as the 777 Football Group, remains unaffected. The firm comprises 60 independent operating companies with a collective asset value of £8.2 billion under its management, indicating its financial stability in areas beyond insurance.
The final decision regarding the approval of the takeover rests with the Premier League, which conducts a thorough owners’ and directors’ test as part of its evaluation process. As Everton fans eagerly await the resolution of off-field uncertainties, the club’s future remains at the center of attention.
In conclusion, while the credit rating downgrade of 777 Partners has raised some concerns, it is reassuring to know that the Everton takeover remains on course, with the firm’s commitment and financial capacity to complete the deal seemingly intact. Everton enthusiasts will be eagerly watching as the Premier League assesses the takeover, hoping for a smooth transition in the coming months.
Frequently Asked Questions (FAQs) about Everton takeover
Q: Why did AM Best downgrade 777 Partners’ credit rating?
A: AM Best, a leading US credit rating agency, downgraded 777 Partners’ credit rating from “excellent” to “fair” due to concerns related to the firm’s financial strength and the absence of audited financial statements for the past two years.
Q: Will the credit rating downgrade affect the Everton takeover by 777 Partners?
A: The credit rating downgrade is not expected to impact the Everton takeover. Sources close to the situation have confirmed that the downgrade is unrelated to 777’s ability to fund the purchase of Everton and will have no material impact on the deal’s progress.
Q: When is the expected completion date for the Everton takeover by 777 Partners?
A: The Everton takeover by 777 Partners is set to be completed by December, as per the timeline typically associated with such transactions. The process began in September when Farhad Moshiri agreed to sell his 94% stake in the club.
Q: What authorities need to approve the Everton takeover?
A: The Everton takeover requires approval from several authorities, including the Premier League, the Financial Conduct Authority (FCA), and the Football Association (FA). 777 Partners has already submitted all required documentation to these entities and is awaiting their approvals.
Q: How does 777 Partners’ credit rating impact its other businesses, like the 777 Football Group?
A: Despite the credit rating downgrade, 777 Partners’ ability to fund transactions in other businesses, such as the 777 Football Group, remains unaffected. The firm comprises 60 independent operating companies with substantial assets under its management.
More about Everton takeover
- AM Best: AM Best is a leading US credit rating agency that downgraded 777 Partners’ credit rating.
- Everton Football Club: Everton is the football club in question, and the takeover by 777 Partners is a significant development for the club.
- Premier League: The Premier League is one of the authorities responsible for approving the Everton takeover.
- Financial Conduct Authority (FCA): The FCA is another regulatory body involved in the approval process for the takeover.
- Football Association (FA): The FA also plays a role in the approval process for the Everton takeover.
- 777 Football Group: 777 Football Group is one of the businesses under 777 Partners, highlighting the firm’s diversified interests.
1 comment
So, AM Best just downgrades 777’s rating, but it’s like, no big deal for the Everton takeover. Those docs got sent, we waitin’ for Premier League, FCA, FA. All good for the deal, folks!