Everton at risk of administration as buyers 777Partners are told there is no chance of takeover being approved soon – and are set to stop funding them – raising fears of new points deduction
- Everton's potential buyers 777Partners have loaned Everton more than £100m
- The group has made it clear that they will no longer fund the club after the New Year
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The Premier League has told Everton's potential buyers 777Partners that their takeover will not be approved before the end of the year, sparking fears the club could enter administration next month.
The US private equity firm has loaned Everton more than £100m for operating costs since reaching a deal to buy the club from Farhad Moshiri in September, but have made it clear they are not prepared to continue funding the club beyond the New Year.
777 have based their loans on the condition that a decision would be made before Christmas, but Mail Sport has been told that the Premier League is still far from completing due diligence into their proposed takeover.
The complexity of 777's finances and corporate structure, with more than 60 companies involved in various sectors including insurance, aviation and sports under their control, is believed to be challenging for the Premier League to assess.
The Premier League's primary concern is determining the source and adequacy of 777's funds, although they are also investigating numerous lawsuits involving associated companies in the United States.
Everton could go into administration next month as the takeover process continues
777's partners, led by Josh Wander, had hoped a decision would be made by Christmas
The group has been funding Everton since agreeing a takeover with Farhad Moshiri
777 claim to control investment funds worth £6 billion and plan to use their own assets to buy Everton rather than rely on loans.
Now that Moshiri has stopped funding the club, Everton need an extra £20m every month on top of their regular income to pay staff wages and cover other operating costs, which 777 has been paying since August.
Without 777's funding, the club would be insolvent and placed into administration, which would attract a further nine penalty points from the Premier League on top of the ten points they have already received for breaching spending rules.
The Premier League would be reluctant to take action that could throw Everton into administration, but it is equally unwilling to be pressured into a hasty solution to a complex problem.
Everton sources insist they remain hopeful the takeover will go ahead and are working closely with both 777 and the Premier League, who declined to comment.
777 said they have not received any formal notification from the Premier League regarding their timeline for making a decision.
Everton would face a possible nine-point deduction if they were to go into administration