Paul Brown shares Everton loan update as A-CAP scramble around 777 collapse

777 Partners’ £200million in loans to Everton are worth just £66m in cash plus equity after the American firm’s collapse, according to Paul Brown.

Brown and Philippe Auclair reported in Josimar (7 October) that in the wake of 777’s complete collapse, major backer A-CAP appears to be liquidating the Miami-based investment group’s assets.

A-CAP, however, is only expected to return roughly £66m in cash plus equity from the loans given to the Toffees during 777’s previous exclusivity agreement with Farhad Moshiri.

Josimar’s report also states that the equity value cannot be converted for seven years, after A-CAP agreed on a deal with incoming Toffees owner Dan Friedkin which includes a warrant to take up to a 10 per cent stake in the club [The Athletic, 24 September].

Dan Friedkin, 777 and A-CAP deal will be a relief for Everton fans

Few Premier League club’s finances have been through the wringer quite like those at Goodison Park, as was made blatantly clear by the initial 10-point deduction the Blues were slapped with through PSR breaches.

That deduction, reduced to six on appeal, and another for further financial irregularities saw eight points chalked off the Toffees’ total last season, and both came during 777’s exclusivity period with Moshiri.

Moshiri’s relationship with 777 never seemed to waver despite the Miami-based firm’s continued inability to meet Premier League rules regarding a takeover, leading to nine months of stagnation.

The money loaned to the club by 777 during that time proved to be a huge sticking point for Friedkin’s initial takeover attempt this summer [The Athletic, 19 July], making the new deal with A-CAP all the more important.

Paying back less than a third of those loans will lift a huge weight off the club, and Toffees fans will certainly be thankful that Friedkin pursued a deal to significantly reduce those crippling debts.

In other Everton news, one former Toffees director slammed the club for a “disgraceful” swipe taken at one of their ex-players.

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