EVERTON have been plunged into further ownership uncertainty – as they begin the Prem hearing likely to see them deducted more points this season.
The Goodison club have engaged “super silk” Laurence Rabinowitz KC to lead their defence against a charge of breaching Profitability and Sustainability Rules last season.
In a January appeal hearing Rabinowitz helped claw back four of the ten points initially deducted in November for the 2021-22 breach.
But the details in the hearing documents show that Everton must have lost at least £41million last season for them to have been charged, with suggestions that they may have actually filed figures showing a deficit of £60m-plus.
Everton accepted all the Prem’s previous calculations at their appeal hearing, meaning they cannot now argue the numbers are incorrect.
That suggests the main thrust of their arguments over what is scheduled to be a three-day hearing will centre on the claim that punishing them again for breaches which include two years already subject to a deduction amounts to “double jeopardy”.
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Under new Prem regulations, the three-man commission must give its verdict and the written reasons by next Thursday, although any decision will be subject to appeal.
But it comes as the suggested “good news” on the proposed takeover by US-based 777 Partners emerged as a very different situation – along with the likelihood of the entire scheme having to be withdrawn within three weeks.
On Saturday, it emerged that 777 Partners had received a letter from Prem legal chiefs saying the league was “minded to approve” the bid, subject to four conditions.
However, those conditions have now also been revealed – and suggest the takeover is potentially doomed.
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According to investigative magazine Josimar, which has revealed the scale of the financial problems besetting the Florida-based fund, the first demand is that 777 Partners convert their current £150m in loans to the club into an equity stake.
But 777 also must “by mid-April” provide proof of funding to complete the £500m-plus club’s new home at Bramley Moore Dock as well as repaying a loan of £158m for stadium building made by another US-based fund, MSP Sports capital.
The third condition demands 777 Partners put sufficient funds into an escrow account – a holding bank account controlled by a third party – to ensure the club’s bills, including wages, for the rest of the season are guaranteed.
And finally, MSP must pay current owner Farhad Moshiri an up-front payment of £64m, potentially rising to £130m.
These are actually a variation of conditions demanded by the Prem at the very start of the sale process in the autumn.
It implies the underlying reasons why the takeover has stalled for six months – and why a withdrawal of the offer appears more likely than a sale completion.
Source: Soccer - thesun.co.uk
