Many have questioned the financial health of 777 Partners, a Miami-based investment firm. It’s why the Premier League has hesitated to approve the group’s attempted takeover of Everton, despite owning stakes in teams in Europe and Australia.
A federal lawsuit filed Friday may have put the final nail in the coffin.
Leadenhall Capital Partners, a British asset management company, alleges in the suit that it had provided more than $600 million in funding to 777, before learning that about $350 million in assets either didn’t exist, weren’t owned by the firm, or had already been promised to other lenders. A slew of 777-related companies and individuals are named as defendants, including owners Josh Wander and Steven Pasko, and their biggest lender, Kenneth King and his firm A-Cap.
“Wander has already admitted to rampant and fundamental breaches of the parties’ agreements—the only question now is whether Leadenhall will be able to recover millions of dollars in damages from a house of cards on the brink of collapse,” reads the lawsuit, filed in district court in New York.
A-Cap said through a spokesperson that the lawsuit’s claims are “baseless.” Leadenhall called A-Cap the “Wizard of Oz behind the 777 Partners’ curtain.”
Everton announced in September that its majority shareholder, Farhad Moshiri, had agreed to sell his 94.1% stake in the team to 777. But the firm couldn’t provide the required financial information for approval, and, in April, the team began looking for another buyer. Amid the ownership debacle, Everton has also been docked points this season for breaching financial rules. Friday’s claims could end the group’s current quest for Premier League ownership.
