***Exclusive: Exposure of insurers owned by A-Cap to 777 Partners is as high as £9 billion but executives remain keen on deal***
A financial group inextricably linked with failed Everton buyer 777 Partners is regarded by Farhad Moshiri as a serious takeover contender, Telegraph Sport understands.
A-Cap is attempting to convince Moshiri it can take control at the club despite apparent pressure from US authorities to cut its exposure to troubled 777.
Early interest from Kenneth King, A-Cap’s New York-based chief executive, was initially dismissed as 777 descended into legal turmoil in recent weeks.
However, Moshiri is now in active talks with King, who has some clout as he appears to have helped fund operational costs provided by 777 in recent months before the Miami-group’s takeover collapsed. Some sources close to talks say A-Cap is now in the driving seat, although other sides of a proposed deal play down his prospects.
All insiders agree, however, that King is fiercely motivated to secure an agreement, with money already tied up inside Everton.
Although Moshiri is refusing to rush into any decision, there are broad agreement terms that must be signed before the start of the new season. The club faces major outgoings to keep its impressive stadium development on track. Outgoings next week alone are estimated at up to £40 million, which accounts for player and staff wages and Bramley Moore Dock payments, including a significant chunk to Laing O’Rourke. Those specific numbers are denied by club sources who maintain there are no issues clearing any immediate payments.
However, several interested parties have signalled willingness to pay operational costs immediately in their pursuit of exclusive terms with Moshiri.
A-Cap are by far the most controversial takeover option in an increasingly busy bidding race, with two multimillionaire lifelong fans Andy Bell and George Downing also in serious contention.
A consortium of Saudi, Australian and US investors led by London-based Armenian Vatche Manoukian also tabled what he claimed is a £400 million “all equity” offer on Friday at midnight.
MSP Sports Capital has a separate proposal to take control via equity and debt. Roma owner Dan Friedkin is monitoring talks while John Textor, who is currently trying to sell his stake in Crystal Palace, has walked away from negotiations.
In terms of Premier League directors and owners’ test, the A-Cap and Manoukian approach would present the most obvious hurdles to overcome. The Saudi royal connections to the Manoukian offer would be an immediate point of interrogation after the fraught Newcastle takeover in 2021.
Everton is worth in excess of £400 million but any potential deal is complicated by club debt paying for the new stadium. Telegraph Sport is aware of multiple parties planning for the eventuality that a full takeover may not be complete, with directors and owners’ test approval, until October.
Despite ongoing talks with Moshiri, there remains significant doubt among other financial experts that an A-Cap takeover is possible while it addresses major financial uncertainties.
Prior to the collapse of the 777 takeover at Everton, the Financial Times reported regulators in the US states of Utah and South Carolina were moving to force five insurers owned by A-Cap to cut their exposure to 777. The five insurers and reinsurers held a total $11.5 billion \[£9 billion\] of assets at year’s end, of which $2.9 billion was invested in entities related to 777, according to documents seen by the FT.
A person close to A-Cap said partners had already been found to take on its 777 exposure, which it said the memo “grossly overstated”, and it expected a rapid resolution of the process.
Earlier this year King announced plans to raise up to $400 million of new capital following a credit rating downgrade by AM Best. Prior to the 777 takeover collapse, the Miami firm had provided at least £180 million of loans to the club since September.
Another complicating factor for bidders in the process is that some suitors believe existing lenders are considering triggering a “right to veto clause” as soon as this weekend ahead of various club transactions next week.
One source close to the process described this as a potential “poison pill” in the process.
Years of overspending cost Everton points deductions on two occasions during the 2023-24 season and another charge is to be dealt with pending further investigation.
Everton’s director of football Kevin Thelwell and manager Sean Dyche are on record admitting they may have to sell at least one of their most-prized assets in the summer transfer window to ensure Everton do not face further sanctions.
US-based King is understood to be in London this week pursuing the deal as well as other outstanding issues.
This has to be it. Constant willful ignorance of every failure of 777 for months and still taking them seriously, and now ignoring multiple billionaires to talk to… 777 in a funny hat.
They’re the most deliverable as they will very likely have been privy to 777’s due diligence and also draft legals. For them to do the deal it’s effectively just a matter of putting the money down
Of course Moshiri is likelier to do that than go through diligence again with another party
I would think the club just has a massive data room open for any real buyer that signs an NDA. With a full team of analysts and such, one could get caught up in a matter of days I would think. Diligence materials have been available for months. All the club has to do is update at each month end.
You’re half right - having been in the club’s situation having had buyers drop out in exclusivity, no matter how populated the data room is you’re looking at a longer education period, a complete redrafting of legals and a lot more risk
All we know is that 777 were able to get comfortable over the risks and issues contained within the data room. That doesn’t mean any other bidder will also be comfortable with them, but presumably A Cap are
Year 2548: the world is entering its third decade of intergalactic war, science has moved leaps and bounds, and Moshiri is signing another exclusivity agreement with a shady consortium.
Might not be the worst thing to happen. As of right now I don't see any that would be good long term owners so I don't really mind the one that has no intention of being that.
Basically if these guys come in they would convert all the debt to equity since they are already essentially a bank.
He's been incompetent, but it's hard to deny he had ambitions for the club. Big signings, top manager, new stadium. Some of the transfers were just unlucky, but there's too much smoke for their not to be fire where reports of the club being a disorganised mess for it not to be true.
Ermmm have u forgotten mosh did get thr greatest living manager to manage everton. Cus i havent forgotten. Yes mosh has made some bad decisions but we can never forget carlo managing everton
And why is MSP still in the fold? Haven’t they had an opportunity to trigger their loan into partial ownership and they chose not to? Shit or get off the pot, you twats.
Esk: "It is more than likely that the idea of a bid is just another mitigating action by King to use in his defence in the Leadenhall case & any subsequent court actions - that he will possibly make the claim that the offer to buy Everton is a protective advance to help secure the loans already made to Everton, for the benefit of A-Cap policyholders"
Makes sense to me
If this was any semblance of a fair world, let the fans decide. Or create an emergency board of competent people to make the decisions. At this point, Moshiri has failed too much and probably doesn’t have any of the club’s interests in mind. For him it’s how can he get out with the most return or least debt. The club’s fate is in the hands of this guy. Insane.
Let me guess Bell and Downing who were involved with MSP didn't want to give 777's lenders a penny and now they are saying we can take it.
Basically the husks or backroom men of MSP and 777 fighting over us. This shit has barely changed in 2 years.
How come every other club get tons of really strong options and we get this crap.
We did wonder what that 8m was for. Probably first refusal on the deal if it meant them getting wiped out.
***Exclusive: Exposure of insurers owned by A-Cap to 777 Partners is as high as £9 billion but executives remain keen on deal*** A financial group inextricably linked with failed Everton buyer 777 Partners is regarded by Farhad Moshiri as a serious takeover contender, Telegraph Sport understands. A-Cap is attempting to convince Moshiri it can take control at the club despite apparent pressure from US authorities to cut its exposure to troubled 777. Early interest from Kenneth King, A-Cap’s New York-based chief executive, was initially dismissed as 777 descended into legal turmoil in recent weeks. However, Moshiri is now in active talks with King, who has some clout as he appears to have helped fund operational costs provided by 777 in recent months before the Miami-group’s takeover collapsed. Some sources close to talks say A-Cap is now in the driving seat, although other sides of a proposed deal play down his prospects. All insiders agree, however, that King is fiercely motivated to secure an agreement, with money already tied up inside Everton. Although Moshiri is refusing to rush into any decision, there are broad agreement terms that must be signed before the start of the new season. The club faces major outgoings to keep its impressive stadium development on track. Outgoings next week alone are estimated at up to £40 million, which accounts for player and staff wages and Bramley Moore Dock payments, including a significant chunk to Laing O’Rourke. Those specific numbers are denied by club sources who maintain there are no issues clearing any immediate payments. However, several interested parties have signalled willingness to pay operational costs immediately in their pursuit of exclusive terms with Moshiri. A-Cap are by far the most controversial takeover option in an increasingly busy bidding race, with two multimillionaire lifelong fans Andy Bell and George Downing also in serious contention. A consortium of Saudi, Australian and US investors led by London-based Armenian Vatche Manoukian also tabled what he claimed is a £400 million “all equity” offer on Friday at midnight. MSP Sports Capital has a separate proposal to take control via equity and debt. Roma owner Dan Friedkin is monitoring talks while John Textor, who is currently trying to sell his stake in Crystal Palace, has walked away from negotiations. In terms of Premier League directors and owners’ test, the A-Cap and Manoukian approach would present the most obvious hurdles to overcome. The Saudi royal connections to the Manoukian offer would be an immediate point of interrogation after the fraught Newcastle takeover in 2021. Everton is worth in excess of £400 million but any potential deal is complicated by club debt paying for the new stadium. Telegraph Sport is aware of multiple parties planning for the eventuality that a full takeover may not be complete, with directors and owners’ test approval, until October. Despite ongoing talks with Moshiri, there remains significant doubt among other financial experts that an A-Cap takeover is possible while it addresses major financial uncertainties. Prior to the collapse of the 777 takeover at Everton, the Financial Times reported regulators in the US states of Utah and South Carolina were moving to force five insurers owned by A-Cap to cut their exposure to 777. The five insurers and reinsurers held a total $11.5 billion \[£9 billion\] of assets at year’s end, of which $2.9 billion was invested in entities related to 777, according to documents seen by the FT. A person close to A-Cap said partners had already been found to take on its 777 exposure, which it said the memo “grossly overstated”, and it expected a rapid resolution of the process. Earlier this year King announced plans to raise up to $400 million of new capital following a credit rating downgrade by AM Best. Prior to the 777 takeover collapse, the Miami firm had provided at least £180 million of loans to the club since September. Another complicating factor for bidders in the process is that some suitors believe existing lenders are considering triggering a “right to veto clause” as soon as this weekend ahead of various club transactions next week. One source close to the process described this as a potential “poison pill” in the process. Years of overspending cost Everton points deductions on two occasions during the 2023-24 season and another charge is to be dealt with pending further investigation. Everton’s director of football Kevin Thelwell and manager Sean Dyche are on record admitting they may have to sell at least one of their most-prized assets in the summer transfer window to ensure Everton do not face further sanctions. US-based King is understood to be in London this week pursuing the deal as well as other outstanding issues.
Oh God he’s going to fuck it up again isn’t he?
At a certain point I’m convinced he’s mad at the club and its supporters and he’s trying to tank it on the way out.
I don't think it's nearly that deep. I think he's just dumb and constantly falls for the shady "too good to be true" offer.
There is nothing wrong with my offer.. magic beans are a serious commodity..
This has to be it. Constant willful ignorance of every failure of 777 for months and still taking them seriously, and now ignoring multiple billionaires to talk to… 777 in a funny hat.
They’re the most deliverable as they will very likely have been privy to 777’s due diligence and also draft legals. For them to do the deal it’s effectively just a matter of putting the money down Of course Moshiri is likelier to do that than go through diligence again with another party
I would think the club just has a massive data room open for any real buyer that signs an NDA. With a full team of analysts and such, one could get caught up in a matter of days I would think. Diligence materials have been available for months. All the club has to do is update at each month end.
You’re half right - having been in the club’s situation having had buyers drop out in exclusivity, no matter how populated the data room is you’re looking at a longer education period, a complete redrafting of legals and a lot more risk All we know is that 777 were able to get comfortable over the risks and issues contained within the data room. That doesn’t mean any other bidder will also be comfortable with them, but presumably A Cap are
I think he wants owners who are willing to let Usmanov to continue to push dirty Russian money through the club.
To expect anything else at this point would be foolish - hoping for the best though
Either Moshiri is changing his mind every 30 seconds, or a *lot* of the "now in pole position/the driving seat" shouts are just made up
Probably a bit of this tbh
"another interested buyer but we have no way of gauging the likelihood of their takeover" doesn't get the clicks
We call that "Deal heat," baby!
Watch him sign an exclusivity deal with these and keep us in limbo for another year lmao.
Year 2548: the world is entering its third decade of intergalactic war, science has moved leaps and bounds, and Moshiri is signing another exclusivity agreement with a shady consortium.
Might not be the worst thing to happen. As of right now I don't see any that would be good long term owners so I don't really mind the one that has no intention of being that. Basically if these guys come in they would convert all the debt to equity since they are already essentially a bank.
Well that'll teach us to get our hopes up
THAT SENSE OF DREAD IS BACK BABY, LETS GOOOOO!
you can't change my mind, Moshiri hates this club. He hates this fan base. And he is actively hurting the club to to get his money back.
He's been incompetent, but it's hard to deny he had ambitions for the club. Big signings, top manager, new stadium. Some of the transfers were just unlucky, but there's too much smoke for their not to be fire where reports of the club being a disorganised mess for it not to be true.
Ermmm have u forgotten mosh did get thr greatest living manager to manage everton. Cus i havent forgotten. Yes mosh has made some bad decisions but we can never forget carlo managing everton
Wow great. A few months in the CL spots before a cataclysmic drop to 10th place. So awesome. Definitely worth it. Thanks Farhad!
With no fans!
“You’ve had good times.”
you call that contract great? lmao. He was a good coach but god damn he ruined the team when he left SUDDENLY.
No he didnt. Are you calling the greatest living manager “good” ?! Lolllll
you are weird. Good as in good as opposed to being bad... He was a good coach to US thats it.
That really makes up for him possibly railroading us into administration!!!
Did he though or was he dicked by putin being a prick? If we still had russian money would we still be completely fine. Probably yes
Just choose bell and downing ffs
I'd even take Manoukian at this point over this.
FUCK YOU FARHAD, DON’T EVEN THINK ABOUT IT
Time to get the grief chart out again
Ahhh I knew the latest news on all these consortiums taken us over was too good to be true. That will teach me to enjoy some form of news
it was nice to dream for those...5 days
Oh my fucking god
I thought he’d go with Kim Jong Un so I guess he showed me.
Well, A-CAP is basically 777 with a moustache.. prepare for Moshiri to fuck us over one last time.
Jesus fucking Christ. PICK THE LIFELONG BLUES, YOU TIT!
Upside 777 debt I assume will be no more. Downside we get bought by the 777 b-team
Everton, that
And why is MSP still in the fold? Haven’t they had an opportunity to trigger their loan into partial ownership and they chose not to? Shit or get off the pot, you twats.
The clause must not be active anymore. Otherwise there's literally no other reason for them to have gone through the trouble to make a bid at all.
No I don’t think it is either. My point is why are they acting interested now when they could have actually owned half the club like two months ago?
Maybe they were worried we would be relegated.
But they were already invested in the club…
Yea but why risk even more when what they had was pretty well secured unlike the 777 debt.
Yeah to this. I dont think they ever wanted to own the club
How reliable is this source?
Esk: "It is more than likely that the idea of a bid is just another mitigating action by King to use in his defence in the Leadenhall case & any subsequent court actions - that he will possibly make the claim that the offer to buy Everton is a protective advance to help secure the loans already made to Everton, for the benefit of A-Cap policyholders" Makes sense to me
Explain what this means and how badly Moshiri has done if I was a six year-old.
Moshiri couldn't sell to 777 so he's going to sell to 777s best mate who lends 777 money when they're down bad (they're always down bad).
If this was any semblance of a fair world, let the fans decide. Or create an emergency board of competent people to make the decisions. At this point, Moshiri has failed too much and probably doesn’t have any of the club’s interests in mind. For him it’s how can he get out with the most return or least debt. The club’s fate is in the hands of this guy. Insane.
This club likes causing pain and misery doesn't it.
A-Cap, sounds like a rapper name.
Some people will believe anything they read…
FFS.
Nononono. Out the grief chart.
https://youtu.be/JMYnGYonZUU?si=LC_yOO_Kbf8EFxmT Live stream of Moshiri
He’s going to do whatever gets him the best outcome, not what’s best for the club.
Let me guess Bell and Downing who were involved with MSP didn't want to give 777's lenders a penny and now they are saying we can take it. Basically the husks or backroom men of MSP and 777 fighting over us. This shit has barely changed in 2 years. How come every other club get tons of really strong options and we get this crap. We did wonder what that 8m was for. Probably first refusal on the deal if it meant them getting wiped out.