Potential Everton FC buyer 777 Partners is implementing a major staff cost-cutting programme with the aim of reducing headcount across the business by around five per cent, according to a report from Mail Sport.
At the same time, US-based credit rating agency and publisher AM Best has downgraded the financial strength rating of Bermuda-based 777 Re Ltd, which is understood to be 777 Partners’ main source of funding, to to C- (Weak) from B (Fair) and the Long-Term Issuer Credit Rating to “ccc-” (Weak) from “bb” (Fair).
Mail Sport reports that there have been redundancies in both 777’s London and Miami offices, while the American investment company’s chief financial officer Damian Alfalla has resigned.
777 has been frustrated by the length of time it is taking the Premier League to conduct due diligence on its offer to buy Everton. A sale in the region of £500m to the US investment fund was agreed with current owner Farhad Moshiri last September.
The Premier League has been scrutinising 777’s attempt to buy Everton for around five months, since current owner Farhad Moshiri agreed the sale last September.
In contrast, the Todd Boehly/Clearlake Capital purchase of Chelsea two years ago was approved in under four weeks, although the circumstances were unusual given previous owner Roman Abramovich’s sanctions following Russia’s invasion of Ukraine, while the more recent Jim Ratcliffe £1.25billion investment in Manchester United was approved in six weeks.
777’s funding for Everton could also have hit a new hurdle after one of its lenders, insurance company Haymarket, was placed under investigation by the Utah Insurance Department.
777 declined to comment about their cost-cutting, but a source close to the company told the Mail that a fluid headcount is standard practice in the financial services industry.
