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    Investor’s Lawsuit Accuses 777 Partners of $600 Million Fraud

    In a suit filed in federal court in New York, a firm that provided hundreds of millions of dollars to 777 accused the company of double-pledging its collateral to other investors.The American investment firm 777 Partners, whose bid to buy the English Premier League soccer team Everton has been on hold for months amid doubts about the company’s finances, was accused by one of its lenders on Friday of running a yearslong fraud scheme worth hundreds of millions of dollars.The accusation came in a lawsuit filed Friday in federal court in New York by Leadenhall Capital Partners, a London-based asset management company. It said that it had provided 777 Partners with more than $600 million in financing, only to discover that roughly $350 million in assets serving as collateral for the loans either were not in 777’s control or had already been pledged to other lenders.The lawsuit is the latest, most serious claim against 777 Partners, which has for years made bold assertions about its financial health — it has previously claimed $10 billion in assets — even as it was trailed a string of lawsuits, corporate failures and unpaid bills.The suit could have immediate implications for 777’s stalled bid to buy Everton: The Premier League has not approved the sale, and the financially strapped club recently said it was seeking alternate investors.But questions about the company’s balance sheet also carry the risk of contagion for the broader world soccer market, given that 777’s portfolio includes ownership stakes in teams in Australia, Brazil, Belgium, France and Germany, and because it owes debts at all of them.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Premier League Cuts Everton’s Points Deduction

    The decision means the club will lose six points in the standings, not 10, potentially helping it to stay in the division and to remain financially viable.Everton, a storied English soccer club trying to weather a serious financial storm, secured a modest victory on Monday when a record penalty that had sent it to the bottom of the Premier League standings was reduced on appeal.Everton’s original penalty, a 10-point deduction for financial rules violations, was reduced to six points, lifting its chances of staying in the division — and of retaining access to the tens of millions of dollars in annual revenues that a place in the Premier League brings.The successful appeal immediately lifted Everton to 15th place in the standings and eased the club’s fears of relegation and potential financial ruin. The reprieve, however, might be short-lived.The Premier League in January announced that Everton and Nottingham Forest, another club at risk of relegation, faced additional charges of breaching cost-control regulations. If the teams are found guilty, the new case will almost certainly lead to another points deduction.Everton, a founding member of the Premier League, has in recent years become a symbol for poor management and financial risk-taking. Crippled by expensive contracts and the cost of constructing a new stadium, the club faces debts of about $1 billion and continues to require regular infusions of millions of dollars in external financing to keep its operations running.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Everton Stripped of 10 Points in Premier League, Deepening Team’s Crisis

    A team operating under a mountain of debt and a proposed sale now faces a sporting penalty for violating financial rules. It vowed to appeal.Everton, a founding member of England’s Premier League that has fallen into financial crisis, faced yet more pain on Friday after it was given a 10-point penalty for breaching the league’s economic rules. The punishment sent Everton to the bottom of the league standings and left it facing the threat of relegation from England’s top division at the end of the season.The announcement of a points penalty was not a surprise, since the Premier League had come under pressure to act by rival teams angered by Everton’s rule breaches. But the decision will deepen the crisis that has engulfed Everton, one of English soccer’s oldest teams, at a time when its very future has been placed under a cloud by hundreds of millions of dollars in debt.An independent league commission hearing the case against Everton for breaching the league’s profit and sustainability rules announced the punishment. It said the penalty — the biggest in the Premier League’s history — must be applied immediately, a result that plunged the Blues to 19th place from their relatively safer position in 14th and on the same points total, 4, as last-place Burnley.At the end of each season, the bottom three teams in the Premier League table are relegated out of the division and into the second-tier Championship.Everton said it was “shocked and disappointed” by the scale of the penalty, and immediately announced its intent to appeal.“The club believes that the Commission has imposed a wholly disproportionate and unjust sporting sanction,” Everton said in a statement on its website. “The club has already communicated its intention to appeal the decision to the Premier League.”The team’s perilous financial state has required regular cash infusions from external sources to allow the club to continue operating. The most recent loan came from 777 Partners, an American group that in September agreed to acquire the storied club. That deal has not yet been approved by the Premier League and the Financial Conduct Authority, a regulator, amid questions about 777 Partners’ own finances.The Premier League referred Everton to an independent commission in March after Everton posted financial losses for the fifth straight year. Under the league’s regulations, teams are allowed to lose no more than 105 million pounds, or $130 million, over a three-year period. Everton acknowledged being in breach of those rules for the financial year through 2022.The panel, according to a 41-page written judgment, agreed with the Premier League’s assessment that Everton had breached the allowed amount of losses by £19.5 million (almost $25 million).The scale of Everton’s penalty raises the prospect of a far larger punishment that could await the league’s dominant team, Manchester City. The club has been charged with 115 rule breaches related to its financial declarations. That case, now in its fifth year, has yet to reach a conclusion; it is being heard by a similar panel to the one that decided the Everton case.While the points loss severely increases the chances of Everton’s suffering a costly demotion to the second tier for the first time in its history, the low point totals obtained so far by some of its relegation rivals may yet allow it to escape. Even with its 10-point penalty, Everton is only 2 points behind Luton Town, the team occupying 17th place — the final position offering safety, and a place in the league, for next season.A spokesman for 777 Partners said the company had no comment on the punishment or any effect it would have on its proposed acquisition, because that process remains ongoing. Its proposed deal contains contingencies for points deductions and even a possible relegation.Part of the reason Everton’s punishment was as harsh as it was, the panel said, was related to a claim, upheld by the panel, that the team had failed to engage with the league in good faith, a claim the team continues to reject.“Both the harshness and severity of the sanction imposed by the Commission are neither a fair nor a reasonable reflection of the evidence submitted,” Everton said. More

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    Everton Sale Stalls Amid New Questions About 777 Partners

    The U.S. firm bidding for the Premier League club, 777 Partners, has failed to provide required information to a British regulator.The proposed sale of the Premier League soccer team Everton F.C. to a Miami-based holding company has stalled because the firm, 777 Partners, has failed to provide audited financial statements to a British government regulator that must approve the deal.The regulator, the Financial Conduct Authority, delivered its request to 777 Partners this month, according to multiple people with direct knowledge of the approval process, who spoke on the condition of anonymity because they were not authorized to discuss it publicly. If the company does not provide the requested financials or an acceptable explanation, its proposed takeover of Everton — a deal involving hundreds of millions of dollars in assumed debt and a coveted place in the world’s richest soccer league — could fall apart.The missing documents are the most significant complication to date in the effort by 777 Partners to add Everton to the collection of high-profile but financially troubled teams it has acquired over the past two years.A failure to close the deal could have severe consequences for the financial viability of Everton, a founding member of the Premier League saddled with the ongoing costs of a half-built new stadium, more than $500 million in debt and a projected annual loss of about $100 million. Everton’s finances are so dire that the club requires monthly infusions of millions of dollars, most recently a multimillion-dollar loan from 777 Partners, to keep operating.“Out of respect for the process, 777 Partners will not be commenting on the ongoing regulatory approval process for its proposed acquisition of Everton F.C.,” the company said in a statement.Everton’s current owner, Farhad Moshiri, on Monday dismissed concerns of any holdup or the suitability of 777 Partners as custodian of Everton. “They are highly professional and deliver exactly when they say they will, and I look forward to them achieving all their regulatory approvals and proceeding to completion on the timetable we set,” he told Sky Sports News.When it announced in September that it had reached a deal for a controlling interest in Everton, 777 Partners said it hoped to complete its takeover by the end of the year. That timeline now seems questionable.For the sale to be approved, 777 Partners must convince not only the Financial Conduct Authority but also the Premier League and England’s Football Association that it would be what they classify as a “fit and proper” steward of the 145-year-old club.But according to multiple people familiar with the process and a review of documents related to it, those bodies are unsatisfied with the financial statements that have been provided. In particular, they are uneasy about the failure of 777 Partners to provide up-to-date audited financial records for a holding company whose subsidiaries include not only well-known soccer teams in Belgium, Brazil, Germany and France but also investments in structured finance, insurance, media and airplane leasing.Wearing caps, Steven Pasko, left, and Josh Wander, the owners of 777 Partners, attended an Everton match last month. Peter Byrne/PA Images, via Getty ImagesThe audited records are not the only hurdle to approval of an Everton sale. The authorities are also asking the firm, run by its owners, Josh Wander and Steve Pasko, to provide details of the source of the funds behind the acquisition.The questions mirror concerns that the Belgian soccer authorities raised last year as they considered whether to grant a license to another one of the company’s teams, Standard Liège. In those discussions, 777 Partners told the Belgian soccer federation’s licensing committee that it could not provide the firm’s most recently audited accounts — a routine requirement in any assessment of the suitability and solidity of the businesses financing teams in the country’s top league.Eventually, the prospect of tossing one of Belgian soccer’s biggest teams out of the league was deemed unacceptable by the committee, and a compromise was found. Now, 777 Partners finds itself in the same position, and the clock is ticking again.While 777 Partners is focusing on completing its purchase of Everton, current and former employees have questioned its own viability. The company, which has rapidly expanded since it was founded in 2015, continues to miss routine payments to businesses, vendors and partners, including brokers that acted on some of the soccer deals, four people familiar with 777’s operations said.One person said the firm, which Mr. Wander recently claimed had 3,000 employees, has missed payroll on at least two occasions. Current and former employees have also reported that bonus payments, a major component of some executives’ compensation, have gone unpaid.777 Partners said Tuesday that “all contractually guaranteed bonuses have been paid,” but acknowledged a different incident this year in which it failed to pay the electric bill for its headquarters, an oversight that a spokesman attributed to a miscommunication.Should 777 Partners provide a fuller picture of its finances to British regulators, they most likely will find that most of 777’s soccer adventures have been funded by a single company, A-Cap. A longtime lender to 777 Partners, A-Cap has the largest exposure to many of 777’s businesses, including the soccer investments.A unit of A-Cap, for example, funded most of a loan of at least $25 million to Everton after the deal to buy the team was announced, two people familiar with the matter said. At 777 Partners, the reliance on money from A-Cap — loans now totaling at least $1 billion — has grown so large that 777 Partners is required to regularly update A-Cap executives about continuing business plans, according to people with direct knowledge of the situation.The relationship between the firms is so enmeshed that last year 777 Partners provided A-Cap with a $9 million loan to acquire a beachfront apartment in one of Miami’s wealthiest neighborhoods. Officials from 777 Partners declined to comment on the arrangement. A-Cap did not respond to an email seeking details of its relationship with 777 Partners.The questions about 777 Partners’s finances and its soccer ambitions have not appeared to affect its figurehead, Mr. Wander. He was recently elected to the board of European Club Association, an influential grouping of European soccer’s top teams.That board seat was highlighted in a prospectus produced by 777 Partners to raise even more capital for its soccer business. The group hopes to raise about $250 million by the end of the year to help finance its purchase of Everton, which, without a new owner or fresh capital, risks bankruptcy. More

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    Everton, 777 and the Business of Premier League Soccer

    777 Partners had been scooping up big-name soccer teams for two years when it bid for Everton. Doubts about its finances could kill the deal.The acquisitions came so quickly that it was hard to keep up. An agreement to buy the oldest soccer team in Italy. An investment in one of the most popular teams in Brazil. Stakes in well-known clubs in Belgium and France, Germany and Australia.Each new deal was trumpeted by the Miami-based investment company, 777 Partners, that was hurriedly snapping them up.Then, in September, the investment group revealed its biggest deal yet: an agreement to acquire a controlling stake in Everton F.C., a founding member of the Premier League and one of the oldest soccer clubs in England.Suddenly, everyone in soccer had heard of 777 Partners. Beyond its name, though, little was known about the company. It said it had $10 billion in assets, but was so closely held that verifying that claim was difficult. Lawsuits against the firm raised concerns for potential partners. A string of unpaid bills, some as recent as this month, raised more.Now, in bidding for a place in the Premier League, 777 Partners faces something it had previously avoided: a forensic review of its holdings, its finances and its brash American co-owner, Josh Wander, who in one recent interview said he was “more serious about investing” in soccer than anyone in history.His company’s bid for control of Everton, an acquisition that would eventually require hundreds of millions of dollars in assumed debt and other obligations, is by no means a sure thing. The Premier League, England’s Football Association and an independent British government regulator, the Financial Control Authority, all must approve the proposed deal, a process that is likely to take months.What they discover could have implications not only for the future of Everton, a fallen, money-losing giant, but also for rest of the financially troubled teams in the 777 network.James Garner of Everton, left, and two teammates celebrate a goal. Nigel French/Press Association, via Associated PressThe stakes are just as high for the Premier League, which is trying to prove it can oversee its clubs’ finances amid talk of government regulation, and for an interconnected global soccer economy reliant on the simple premise that teams can and will pay their bills.None of the soccer or public agencies currently assessing 777 Partners would discuss their review or a timetable for its conclusion.Mr. Wander, the co-founder and public face of the company, declined multiple requests to be interviewed for this article, though he published a long letter to fans on Everton’s website on Saturday in which he acknowledged fans had been discomfited by media reports about the company’s businesses. But those reports, he said, were “misleading.”“The truth is far more boring than the fiction,” he wrote.“We are not asset strippers nor speculative investors. We build and hold businesses, and intend to hold the football clubs in our portfolio for a long term,” a spokesman for 777 wrote in an emailed statement. In the letter to fans, Mr. Wander wrote that he would share “player recruitment, data analytics and commercial development resources,” with the other teams in the group.More than a dozen current or former employees, club officials and others who have done business with 777, however, revealed new details and questions about the sources of its financing. The people asked not to be named because of relationships with the company.In interviews, they also shared details about unmet obligations and unpaid bills, and wondered if the company has the resources to manage a global network of clubs carrying hundreds of millions of dollars in debts and obligations.A successful takeover of Everton would bring the number of clubs in 777’s portfolio to eight. The teams in its existing stable are well known: Genoa in Italy, Hertha Berlin in Germany, Vasco da Gama in Brazil. All are different in size and ambition but shared a common theme before attracting the interest of 777: They were all in financial crisis.Mr. Wander, 42, and his co-founder Steve Pasko, a Wall Street veteran two decades his senior, would not have been seen as a typical sports team investors when they started 777 Partners in 2015. At the time, the company’s core investments were related to the world of structured settlements, an opaque industry in which recipients of long-term annuities, typically the result of compensation claims, cash them out for lump sums of immediate cash.In one recent interview, Wander, on the left, said he was “more serious about investing in soccer than anyone in history.”Luca Zennaro/EPA, via ShutterstockThe firm quickly branched out into other sectors, including low-cost airlines and litigation financing, according to Gary Chodes, who served as a board member of a 777 subsidiary until 2017. He said he parted on good terms, but that the firm he left had few profitable businesses. So he noticed when 777 started collecting soccer teams and committing to assume their sizable debts through loans and other upfront payments.“If I was to ask, ‘Is there a little bit of mystery as to how Josh would generate three quarters of a billion dollars to buy a sports team from the businesses he owns in 777?’ — I would say that’s somewhat of a mystery,” he said.In past interviews, Mr. Wander has painted a picture of a sprawling and successful business, one that manages $10 billion in assets, counts 60 subsidiaries across a range of industries: sports, insurance, aviation, media. Many of the company’s financial details are difficult to verify since the business is private and its financial structure, current and former staff members said, is closely controlled by Mr. Wander and Mr. Pasko. Last weekend, for example, it announced the sale of one of its insurance businesses without identifying the buyers or the price.The company relies on loans to operate many of its businesses, according to the current and former employees. One of the biggest lenders to 777 is A-Cap, a private company operating in the insurance and investment business, three people said. A-Cap did not respond to a request for comment. “Not all of our 60 businesses will be profitable at any one time, but the fundamental underlying business performance of the 777 Group is strong,” Mr. Wander wrote in Saturday’s letter to fans, adding the company was not a “typical private equity firm.”Yet as 777 executives have spoken of their ambition and the scale of their operations, some of the businesses they run, including their sports teams, have reported missed payments related to agreed-upon funding schedules and even routine operating expenses.In England, for example, the chairman of the British Basketball League, in which 777 owns a 45 percent share, wrote to its founders on Sept. 6 warning that the league was at risk of bankruptcy unless the firm delivered a late payment of about $1 million. Those funds eventually arrived.In Belgium, according to reporting by the soccer magazine Josimar, the lack of clarity around 777’s finances spooked Belgian soccer’s licensing officials enough that they considered refusing to allow the company to continue operating the 125-year-old club it owns, Standard Liège. Eventually a compromise was found, and the team was granted a license.A successful takeover of Everton would bring the number of clubs in 777’s portfolio to eight, including Vasco da Gama in Brazil. Buda Mendes/Getty ImagesIn Brazil, Vasco da Gama had been anxiously awaiting a scheduled payment of about $23 million due the same week as the basketball league was expecting its funds. Without the money, Vasco has been unable to make outstanding payments to its suppliers and to rival teams owed in past deals for players. When it missed some of the payments, soccer’s governing body prohibited the club from signing new players until its debts were paid.Through its spokesman, 777 said it had already delivered much of the money required in its payment schedule with Vasco. It also said it was ahead of “ahead of schedule” and “beyond our original commitment” to the British Basketball League. But to some outsiders, the repeated issues involving money suggested an exercise in financial plate-spinning rather than the kind of healthy, well-capitalized owner a Premier League team requires.Away from the soccer field, its co-founder, Mr. Wander, built an image of a risk taker with a knack for making money.One former associate, Rhonda Bentzen, recalled how Mr. Wander would request loans from colleagues at a structured settlements business he had set up with the promise of profits in a matter of days. “I did it with him a few times and he absolutely doubled the money every single time,” Ms. Bentzen said. But once, she said, she watched Mr. Wander drop about $5,000 in a Las Vegas slot machine, lose it all in less than a minute and “not bat an eye.”In the early years of his business career, Mr. Wander was shadowed by a cocaine-trafficking charge from his college days at the University of Miami. After he pleaded no contest in 2003, he spent more than a decade on probation. A spokesman for the company said his plea, and the successful completion of his probation, meant he “was not convicted of anything.”Court records reveal other details about Mr. Wander, his company and money. In 2012, the Bellagio casino sued Mr. Wander for failing to pay back a $54,500 cash advance. In March, American Express went to court seeking $324,000.89 that had been charged to a 777 Partners credit card. The spokesman for 777 said both matters were resolved. Court documents show the Bellagio repayment remained outstanding for at least six years.Just last week, a former business partner in 777’s airline business made an allegation of fraud against the company in the Court of Chancery in Delaware. The filing said the firm and a subsidiary, Phoenicia L.L.C., “are part of a web of companies 777 uses to move around money and assets to operate and conceal a sprawling fraudulent enterprise.” A 777 spokesman declined to respond to the accusation, citing a company policy not to comment on litigation.The pattern of late and delayed payments, rather than any lawsuits, raises the biggest doubts about 777’s suitability to run Everton, said Keiron Maguire, a lecturer in the management school at the University of Liverpool and a specialist in soccer finance. “It’s a red flag to a potentially more significant cash-flow issue, or incompetent management,” he said.Everton’s Goodison Park Stadium in Liverpool, England.Jon Super/Associated PressMoney is of paramount concern at Everton at the moment. The club’s current owner, Farhad Moshiri, has spent close to $1 billion on Everton since purchasing the team in 2016, and the club’s immediate financial needs are so acute that 777 has already lent the team more than 20 million pounds, or almost $25 million, just so it can continue to operate.By agreeing to take on its ballooning debts, as well as a Premier League wage bill and a half-finished stadium on the Liverpool waterfront, 777 Partners has essentially committed to injecting hundreds of millions of dollars into the club. Last weekend, they saw the job ahead first hand, taking in an Everton match from seats in the front row of the director’s box.Executives at Vasco da Gama in Brazil were watching. It had not escaped their attention that the $25 million loan that 777 Partners gave Everton last month was similar to an amount that was, at that moment, still owed to Vasco.On Thursday, a month after it was due, part of the payment arrived, with a promise that the balance would be paid on Friday morning. But it was not paid. The holdup, 777 Partners said, was a bank holiday in the United States.The missing $7 million, the company assured Vasco, would be there this week. More

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    Everton Stays in the Premier League. But for How Long?

    A win on the final day of the season kept Everton in the league and relegated Leicester and Leeds. But those results may be subject to change.LIVERPOOL, England — The announcement rang out around Goodison Park before kickoff, and then again ahead of the second half. In a clear, commanding voice, it informed Everton’s fans that they were not, under any circumstances, to invade the field or throw objects at the players on it.With Everton’s long-held place in England’s Premier League hanging by a fraying thread, it was reasonable to assume that Sunday afternoon would end in one of two outcomes: ecstasy or outrage. There was no third option. All the final game of the season would decide, really, was which one materialized.In the end, the former won out. Everton beat Bournemouth, 1-0, on a single, priceless goal by midfielder Abdoulaye Doucouré, rendering the results at Leicester City and Leeds United — the two teams that were hovering, waiting for Sean Dyche’s Everton team to slip — irrelevant. Leeds lost, Leicester won; both were relegated anyway. Everton, for the second time in two seasons, clung to its place in the elite by the quicks of its fingernails.That should, really, have been cause for celebration. There were fans on the field within a couple of seconds of the final whistle ignoring the increasingly desperate pleas of the voice on the public-address system. Flags fluttered at their backs. Plumes of blue smoke trailed from pyrotechnics. Children slid on their knees on the turf.Peter Powell/Agence France-Presse — Getty ImagesCarl Recine/ReutersEVERTON 1, BOURNEMOUTH 0 Abdoulaye Doucoure’s goal set off the celebrations at Goodison Park, and gritty defending made it hold up.Carl Recine/ReutersRelief, though, is not the same as joy. As the fans milled around the field, many drifted as if on autopilot toward the area beneath the directors’ box. Its usual occupants, Everton’s owners and executives and power brokers, were absent, as they have been since January, when they were advised to stay away for their own security.Still, this was a chance for the fans to send a message. Loudly, repeatedly, they set aside their glee to demand the removal of the club’s board. In what might have been a moment of triumph — or at least something approaching it — the thought of Everton’s fans turned almost immediately to revolt.There is a reason for that. It is not just that the current regime at Goodison Park has brought one of English soccer’s great traditional houses low, thanks to a combination of poor planning, reckless spending and good, old-fashioned witlessness.Even Dyche, brought in as a firefighter, seemed determined to point out after the game that survival should not be a source of pride. “There is still massive amounts of work to do,” he said, as if preparing the fans for the idea that there is more struggle to come. “This has been going on for two years. It is not a quick fix.”That is true, of course. The ownership of Farhad Moshiri has reduced Everton to days like these — ones filled with fear and jeopardy and dread — with ever-increasing regularity. But more damning, and more urgent, is that the club has been managed so poorly that this game, this win, may be nothing but a stay of execution.Joe Giddens/Press Association, via Associated PressMichael Regan/Getty ImagesLEICESTER 2, WEST HAM 1 Early goals and late tears, but the 2016 Premier League champions could only watch the bitter end.Michael Regan/Getty ImagesIn March, the Premier League charged Everton with failing to comply with its catchily titled Profit and Sustainability rules, the regulations formerly known as Financial Fair Play. From 2018 to 2021, the club recorded losses of almost $460 million, three times more than the amount permitted under the league’s protocols.The case is, slowly, making its way through the league’s labyrinthine quasi-judicial system. An independent panel will be appointed to investigate. Representations will be made. Appeals will, doubtless, be lodged. The whole process is dragging to such an extent that even the Premier League itself has suggested it might need to be expedited just a little.In the end, Everton’s punishment might extend beyond being forced to pay compensation to Leeds, Leicester and Southampton, the three teams relegated this season. It could face a points penalty next season. It may even have one retrospectively imposed on this campaign. As things stand, Everton has avoided relegation. But only as things stand.Regardless of the merits of the case against Everton, the fact that 38 games have been played and the table cannot quite be entered into the records should be a source of considerable embarrassment for the most popular sporting competition on the planet.The season has ended and the Premier League cannot say, for certain, which 20 teams will comprise its membership next season. Given that there is also an open case against Manchester City, champion for the last three campaigns and on the verge of a domestic and European treble, it is fair to say that everything that has happened over the last 10 months is still subject to change.Lee Smith/Action Images, via ReutersGareth Copley/Getty ImagesTOTTENHAM 4, LEEDS 1 Two goals from Harry Kane helped send Sam Allardyce and his team down to the Championship.Gareth Copley/Getty ImagesThe significance of that cannot be underestimated. If the Premier League cannot wrangle its teams to abide by the rules that they themselves have established, then it does not so much have a regulatory issue as a legitimacy one. Sports are, in effect, policed by consent. If that process is seen to be tainted, if the playing field does not appear to be level, then that consent is removed.More important, those who watch the league — the people who follow it, fund it, afford it a significance that is not inherent — cannot trust that what they are watching has any meaning. If the outcome of a game cannot be known until a legal process has been exhausted, then the game itself becomes secondary.Just after Doucouré’s goal, as Goodison Park was fizzing and bouncing and melting in euphoria, a fusillade of fireworks exploded in the sky just above the Gwladys Street Stand. They produced, in truth, more sound than light: Their sparkle and their shimmer was lost, just a little, against the bright sunlight.Still, each thud elicited a cathartic, ecstatic roar from the crowd, each one signaling a step closer to salvation. The display felt, though, a little premature. There was still a half-hour left in the game. All Bournemouth had to do was score and, with Leicester winning, everything would change.Everton survived the brush with hubris. It made it to the end unscathed. The whistle blew and the fans stormed the field and the table flashed up on the screen and the team occupied 17th place and sanctuary. And yet there was still a sense of uncertainty, a dull rumble of fear, that things were not yet settled. The fireworks have been set off, even if nobody knows for sure quite what there is to celebrate, not yet. More

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    For Everton and Premier League, Relegation Battle Isn’t the End

    A club’s battle to avoid relegation is being shadowed by an investigation into its spending, and nudges to announce a resolution before next season.Everything is clear at the top of the Premier League.Manchester City, with what has become an inevitable regularity, is once again the champion of England’s Premier League. Its triumph over second-place Arsenal was sealed last weekend, and those two clubs — along with Saudi-owned Newcastle United and City’s crosstown rival Manchester United — already have secured the league’s four spots in next season’s Champions League.The drama in England now is at the bottom of the standings, where three clubs will enter the final day of the season this weekend locked in a high-stakes fight to retain their places in the league, and where an investigation into the finances of one those clubs — Everton — means that whatever happens on the field may not be the final word on who gets relegated.And that is worrying the Premier League.The issue is this: Everton’s financial losses of 371.8 million pounds between 2018 and 2021 (roughly $460 million) were more than three times higher than a cap imposed by the league. In March, the Premier League charged the club with breaking its cost-control rules and assigned an independent arbitrator to investigate. By league rules, the arbitrator alone is empowered to decide the case and mete out any potential penalties.In the weeks since, however, rival clubs have pressed for a decision before the start of next season. They include, but are not limited to, those teams whose futures are inextricably linked to Everton’s finish in the league, each of them aware that a potential points deduction for financial violations — if it arrives before the new season — might seal Everton’s relegation instead of their own.The Premier League — already under pressure to announce a ruling in a separate and long-running case related to Manchester City’s spending — has quietly been pushing for a resolution, too. According to people familiar with the league’s internal discussions, Premier League officials lobbied the independent commission to reach a decision ahead of next season.The commission’s members have refused to be hurried, however, according to several people familiar with the exchanges. At times, those members even felt the need to remind league officials of the independence of the panel.Both cases come as English soccer is poised to adopt a government-appointed independent regulator, a post that threatens the Premier League’s ability to keep rulings on contentious issues in-house. The league’s critics contend that such a regulator has become necessary to police a group of owners increasingly drawn from all corners of the world, including nation-states with access to seemingly unlimited reserves of capital and lawyers.For the moment, Everton’s focus — like that of its bottom-of-the-table rivals Leicester City and Leeds United — is to avoid the ignominy (and potential financial ruin) of relegation. Only one of the three clubs will be spared that fate on Sunday, and Everton, a fixture in the Premier League since its inception in 1992, currently holds a slim advantage. It is one place — and two points — above Leicester and Leeds, and needs only match its rivals’ results on Sunday to finish above them in the standings.For relegated teams, the loss of a place in the Premier League, and the tens of millions of dollars in revenue that membership guarantees, can be a devastating blow. So-called parachute payments from the Premier League help to cushion some of the financial losses for as many as three seasons, but the consequences of the new straitened circumstances often lead to the gutting of club budgets and the departures of players, coaches and other staff members.The prospect that the fate might fall on a club and then later be reversed has angered even Premier League teams not involved in this year’s relegation fight. One Premier League executive recently expressed surprise that there had not been greater coverage of the claims against Everton and the lack of urgency to adjudicate them; the official equated the accusations of financial rules breaches to doping.The Premier League declined to comment on the Everton investigation or any efforts to speed it to a conclusion. Everton has signaled that it will dig in and fight any possible penalties; when the Premier League charges were announced in March, the club said it was “prepared to robustly defend” its position in front of the commission.Even without the threat of relegation, though, Everton is a club in disarray. Its owner, the Iranian-British businessman Farhad Moshiri, has spent hundreds of millions of dollars on players since buying the club, only to have its on-field results crater and a much-hyped stadium project risk stalling because of a shortage of funds. A search for a new owner, announced earlier this year, has so far not produced a savior.The club’s financial troubles were only made worse when Moshiri’s longtime business partner, the billionaire Alisher Usmanov, was sanctioned by the British government and the European Union for his close relationship with Russia’s president, Vladimir V. Putin. That forced Everton to end its relationship with companies linked to Usmanov, who in recent years had plowed millions into the club and projects like the team’s half-built new stadium.Everton’s fans have been protesting its ownership for much of the season — as they did last year when the team narrowly avoided relegation. On at least one occasion this season, Everton’s leadership was advised by the police not to attend games. More

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    Everton’s Identity Crisis

    Europe is filled with big clubs that lost their way. But soccer’s fallen giants will never rise again until they face what they’ve become.Frank Lampard can, at least, be sure that there will be no lasting damage. The disappointment of his firing as Everton manager will sting for a while, of course, but there is little reason to believe it will be held against him. A failure to meet expectations at Everton has long since become the sort of thing that might happen to anyone.It did not, after all, stop Carlo Ancelotti — who steered Everton to the dizzying heights of 10th in the Premier League in his sole full season at Goodison Park — from getting the Real Madrid job. Less than a year after leaving Merseyside, Ancelotti picked up his fourth Champions League trophy (a record), and became the first manager in history to win domestic titles in all of Europe’s five most illustrious leagues.Ancelotti’s predecessor at Goodison, Marco Silva, has not done quite so well, but his Fulham team currently sits seventh in the Premier League. Ronald Koeman left England with his reputation shredded, but he has since managed the Dutch national team, Barcelona, and the Dutch national team again. Roberto Martínez spent eight years in charge of Belgium; his next task is to take Portugal to the European Championship next summer.Indeed, of the six most recent (permanent) managers to have clasped English soccer’s great poisoned chalice before Lampard, so far only one — Sam Allardyce — failed to recover, and that might be attributed at least in part to his pre-existing, not especially flattering and largely self-inflicted caricature. (Rafa Benítez, whom Lampard replaced a year ago, has yet to return to work.)That is instructive. Only one of those managers, Ancelotti, left the club on his terms and with the broad beneficence of the fans. The rest left Goodison Park bilious, rancorous and, more than once, on the verge of outright mutiny.Frank Lampard in better days. (Spoiler: There weren’t a lot of those.)Geoff Caddick/Agence France-Presse — Getty ImagesThat so few of those managers have been sullied by the manner of their departures indicates that soccer, as a whole, does not feel Everton, these days, is the sort of place where a manager’s talent can be accurately gauged. Lampard — now four years into his managerial career and with little proof, either way, of whether he is particularly cut out for the job or not — will benefit from that just as Koeman, Silva and all of the others did.Why that should be, of course, has been outlined frequently in the days since Lampard was fired.As noted by this newsletter last week, Everton’s majority owner, Farhad Moshiri, lacks a clear vision for what he wants the club to be, other than — as a statement put it — not in the Premier League’s relegation zone. He has, in the six years since he bought Everton, spent something north of $500 million on players, but the recruitment has been so scattershot that it has incontrovertibly made the team worse.He appointed a director of football and then, by most accounts, did not empower him to sign anyone. He has hired and fired managers with such speed that Lampard’s team for his final game, a defeat at West Ham, contained players brought in by four of his predecessors. Everton is a patchwork of different influences and ideas and policies, a consequence of years of failure.Both among the club’s fan base and soccer’s professional commentariat, conventional wisdom has it that it is from there that the tendrils of Everton’s chronic disappointment, its permanent crisis, climb: not with the manager but with the system in which they are expected, forlornly, to work. It is, of course, correct. It may not, though, quite get to the root of the issue.For the youngest Everton fans, glory is just a story passed down the generations.Molly Darlington/ReutersIt is impossible to escape Everton’s history. It is there, emblazoned on the stadium, in a series of snapshots commemorating the club’s finest teams, its greatest achievements. It is there, in the words to “Grand Old Team,” the song that long served as one of the club’s prematch standards. It even warranted a mention in the statement Lampard released after his departure, in which he paid homage to the club’s “incredible” history.That is understandable: Everton’s history is unusually illustrious. It is, depending on your preferred metric, either the fourth most successful team in English history — in terms of league titles won, ahead of Manchester City, Chelsea and Tottenham — or the eighth, if total trophy haul is deemed a better measure. That history is, as it should be, a source of immense pride.It is also, though, a prison. The metastasis of soccer over the last two decades has, effectively, rendered history largely irrelevant as a marker of power. Everton’s nine league titles do not mean it earns more from the Premier League’s television deals than Brentford, just as A.C. Milan’s seven European Cups do not give it more financial firepower than Bournemouth (Champions League titles: zero).The past that brings charm can also hold a club back.Phil Noble/ReutersThe old hierarchies no longer hold, as the rise of Manchester City and Paris St.-Germain make clear, toppled and leveled by the flood of money rushing into the game from broadcasters and sponsors, from oligarchs and hedge funds. History is no longer a draw. Or, rather, it is not nearly so significant a draw as wealth, or prospects, or status, or facilities, or plans.That adjusted reality has affected the game’s self-appointed superpowers, of course, just as surely as it has affected the vast majority of clubs, the minnows and the traditionally mediocre, all of whom have been forced to adapt to narrowed horizons and limited ambitions.The impact has been most profound, though, on the class of club to which Everton belongs, those on the second rung of the game’s long established and now defunct power structure, those who are best regarded as soccer’s cruiserweights.Those teams can be placed, broadly, into two categories. There are those who have accommodated themselves to the way things are now, who have managed to carve out a new definition of success that enables them to find some contentment in a hostile environment.For Benfica and Ajax, say, that has taken the form of trading continental prominence for domestic supremacy, secured thanks to a steady stream of young talent. For Borussia Dortmund, it has involved accepting a place as the game’s most reliable springboard, a role as a midwife to greatness.Unlike some other faded powers, Benfica has found its place in the modern soccer economy, and in this season’s Champions League.Pedro Nunes/ReutersAnd then there are those who seem to be weighed down by the burden of their history: Valencia, Inter Milan, Marseille, Schalke, Hamburg, West Ham, Aston Villa and, of course, Everton, all unable or unwilling to adopt the methods of their former peers to stake out a new place for themselves.It is no surprise that these teams have become, for the most part, the most unstable, the least contented clubs in Europe. Happiness is a fleeting thing in soccer; elite sport does not lend itself to lasting satisfaction. But these clubs often seem the most unhappy, caught in a grinding, unending identity crisis, trapped between what they were and what they are.That is what lies at the heart of the modern Everton. Like Lampard, even Moshiri, to some extent, can be viewed as a consequence as much as a cause of the problem. The club was so desperate to be restored to what it once was that it sold itself to someone who — on the balance of the last six years — has very little clue what he is doing, beyond hiring famous managers and signing expensive players and hoping for the best.And it is what will continue to undermine Everton until it is resolved, as the teams above them streak away and the teams traditionally beneath them — the smart, progressive ones, at least — roar past. Everton has never been willing to surrender the idea that it is more than a way-station, that it is a destination sort of a club, even if doing so is the first step to returning itself to relevance. To do so would be to think small, and thinking small is unimaginable when you believe, when history dictates, that you are big.CorrespondenceThanks, first of all, to the half-dozen eagle-eyed readers who got in touch to inform me that I had my magical kingdoms mixed up: Disney World is in Florida, by all accounts, whereas Disneyland is in California. I have, alas, been to neither, owing to a lifelong — and to be honest perfectly logical — fear of giant anthropomorphized mice.The issue of celebrations, meanwhile, seems to animate even more of you than the misattribution of theme parks. “I wonder if goal celebrations can (or used to) be culture-specific,” wrote Thomas Bodenberg. “In 1994, Brazil played Sweden at the late, unlamented Pontiac Silverdome. When Kennet Andersson scored for Sweden, putting them 1-0 up, he just jogged stoically back to his end, awaiting kickoff. I wonder if that was more a product of Swedish culture than the individual.”Quick: Which player scored the goal here?Ina Fassbender/Agence France-Presse — Getty ImagesWhat irks Allan Culham, on the other hand, is how often goal-scorers “do not recognize whoever set them up to get it. Often the assist is the most impressive part, but players celebrate as if it was a result of their effort alone.”It feels to me as if many players do, these days, opt for the “emphatic pointing” method of celebration, singling out the teammate who made the chance, but this hits upon an issue close to my heart, and one I have discussed with a host of current and former players: the cliché runs that scoring a goal is the hardest job in soccer, but I would contend that making one is infinitely more difficult. (They largely disagree with me.)Dan Lachman is not short on ambition. It is time, he wrote, to “retire” the tradition/habit/pretension of referring to players by the role seemingly predicated by their numbers. “Does the casual fan have any clue what a ‘No. 6’ is? How about calling it a holding, or defensive, midfielder? It’s time for this to go.”Oddly, this is a relatively new phenomenon: At a rough guess, the phrase “No. 6” would never have appeared in English commentary of a game even 10 years ago. It is a recent (and entirely harmless) import, and I would agree that it does not actually offer the clarity people assume. What a No. 6 does in Spain, say, is different from what one does in Germany, which is different again from how the Dutch perceive the position.Forward Lynn Williams wore the No. 6 in two recent victories for the U.S. women’s team. Lynn Williams is not a No. 6.Andrew Cornaga/PHOTOSPORT, via Associated PressAnd a forlorn request from Tony De Palma. “I long to know what is being sung by fans at Premier League stadia,” he wrote. “I love the feel of the spectacle, the ambient sound, but I am unable to make out all but the most well-known chants. How can I, an American onlooker, figure out what these English fans are singing?”Alas, Tony, the first assumption should always be that whatever it is, the lyrics would almost certainly make the Grey Lady blush. I remember going to a baseball game in San Francisco a few years ago with my wife, who is no fan of either sport. So powerful is social conditioning, though, that after a few minutes even she turned to me, with the air of a disappointed line manager conducting a performance review, and asked why it was that the fans were not swearing at the opposition team. More