Everton’s takeover by 777 Partners could come under threat after an investigation was launched following concerns raised about the firm’s investment in British basketball.
Telegraph Sport can reveal that on Friday, the same day a deal was announced for 777 to purchase Farhad Moshiri’s 94.1 per cent stake in Everton, the British Basketball Federation began a review connected with the American firm’s co-ownership of the British Basketball League.
The probe relates to late payments made by 777 to the BBL this year that left the latter in danger of failing to pay its bills and triggered a complaint by seven of the league’s 10 clubs to the BBF.
The outcome of the review could have major implications for the Everton takeover, which is subject to the prospective buyers passing the Premier League’s owners’ and directors’ test.
Among the disqualifying conditions for those who submit to the test is that “they are subject to a suspension or ban from involvement in the administration of a sport by any ruling body of a sport that is recognised by the International Olympic Committee, UK Sport, or Sport England, another of the home country sports councils, or any other national or international sporting association or governing body, whether such suspension or ban is direct or indirect (for example, a direction to Persons subject to the jurisdiction of the ruling body that they should not employ, contract with or otherwise engage or retain the services of an individual)”.
The BBF probe was triggered after concerns were raised about 777 with the governing body’s chairman, Chris Grant, by seven BBL clubs, including by the owners of two who told Telegraph Sport they wanted the league to cut ties completely with the firm.
Those teams are at loggerheads with the league itself, the chairman of which, Sir Rodney Walker, declared himself “really quite cross” about a BBF review he blamed on “forces at work in basketball at the present time trying to create trouble”.
Sir Rodney confirmed 777 had been late making payments to the BBL this year – causing the league to be late with a payment to the BBF in breach of its licence with the latter – but told Telegraph Sport the firm had “fully caught up”.
He said the company’s co-founder, Josh Wander, had provided written assurances on Friday that the remaining balance of its £7 million investment, £800,000, would be paid by the end of the month and that a promised loan of £4 million would also be honoured.
He also accused the BBF of having been in ongoing breach of its own commitments to the BBL under the licence.
Asked about the other, more serious, allegations to emerge against 777, Sir Rodney said: “Of course, they are of interest to me and I have discussed them fully with 777. They have an explanation. Whether or not their explanation answers all the questions is something I can’t comment on because I don’t know all the details.
“All I can say is, notwithstanding the fact that, for a few months, they were not paying all the money over to me, they have now paid all the money and they have now made an offer in writing to go beyond that. So, they are, as far as I’m concerned, delivering on their promises.”
He also played down doubts over how a firm that struggled to pay its bills on time could afford to spend £500 million on a Premier League football club, saying: “A lot of people won’t understand a lot of these sorts of companies, like 777, are raising money all the time.”
A former chairman of Leicester City and Wembley Stadium, Sir Rodney said those carrying out due diligence on behalf of Moshiri had made no contact with him to ask questions about the BBL’s experience with 777.
He added: “From what I read, the seller, I think, is just very pleased to find someone who wants to buy his shares.”
keeps me up at night......Laughing
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