777 Partners
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_March_2011.JPG) Headquarters at Brickell World Plaza | |
| Company type | Privately-held investment company |
|---|---|
| Founded | September 1, 2015 |
| Founder |
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| Headquarters | |
Number of locations | 3 (Miami, London, New York City) |
Key people |
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| Subsidiaries | |
777 Partners is an American private investment company based in Miami. Founded in 2015, it acquired several soccer clubs, such as Genoa CFC in Italy, Standard Liège in Belgium, Red Star FC in France, CR Vasco da Gama in Brazil, and Hertha BSC in Germany. It has minority shareholdings in Sevilla FC in Spain and Melbourne Victory FC in Australia. The company owned the London Lions basketball team and had a large minority stakeholding in the British Basketball League (BBL). The company is also a shareholder in low-cost carrier Flair Airlines.
777 has faced lawsuits over alleged non-payments in the United States, and also in Belgium, where a court ruled that its assets could be seized.[1][2][3] It has had aircraft seized in Canada due to alleged non-payment,[4] and its airline Bonza went into voluntary administration in 2024,[5] the same year that the BBL's operating company had its license revoked by British Basketball.[6] In July 2024, A-CAP, an American insurance firm investing in 777, wrote to all of its soccer clubs informing them that it was their new owner.[7]
Soccer
[edit]Sevilla
[edit]777 Partners' first investment in soccer was to purchase a minority stake in Spanish La Liga club Sevilla FC in 2018.[8] In 2020, it elevated its share to 7.5%.[9] 777 does not legally own shares in Sevilla as its involvement is as the owner of a group called Sevillistas Unidos S.L.. The latter organization has denounced 777 for listing Sevilla as one of "Our Portfolio Brands" on its website.[10]
Sevilla had been identified by 777 Partners as an opportunity for investment due to their focus on buying and selling players under sporting director Monchi. Their investment had been greeted with suspicion due to the club's history of being owned by local dynasties.[11]
777 Partners' investment around Sevilla was allegedly funded in part by a loan from Oleg Boyko, a Russian businessman sanctioned by several countries for reported connections to the Russian state. In 2024, Boyko allegedly demanded 777's shares in Sevilla as collateral for his loan.[11][12]
Genoa
[edit]In September 2021, 777 Partners bought 99.99% of Italian Serie A club Genoa CFC, the country's oldest club, founded in 1893. It became the sixth club in the league to have an American owner, and the transaction to buy the club from long-term owner Enrico Preziosi was estimated at €150 million.[13] The club hired former AC Milan and Ukraine striker Andriy Shevchenko in November, firing him in January 2022;[14] Genoa ended the season relegated (as did another US-owned team, Venezia FC),[15] but were immediately promoted back into the top division in May 2023.
James Horncastle wrote in May 2024 that Genoa fans were not antagonistic toward 777, partly due to a history of mismanagement by Preziosi. Horncastle mentioned that Genoa had a one-point deduction for a late tax payment in their 2022–23 Serie B promotion season.[11]
Vasco da Gama
[edit]In February 2022, 777 Partners bought 70% of CR Vasco da Gama, a Campeonato Brasileiro Série A club from Rio de Janeiro for R$700 million, valuing the club at R$1.7 billion. The transaction was the biggest in the history of Brazilian football, and came off the back of a change in legislation allowing clubs to adopt new legal structures by becoming limited companies and sourcing finance from private equity markets.[16][17]
Fans protested against 777 Partners in the 2023 Campeonato Brasileiro Série A season, as the club found itself in the relegation zone.[18] The team survived, and signed players including France international Dmitri Payet, but fans continued to protest, vandalizing the stadium in May 2024.[11]
Within a month of taking over, Wander said that Vasco would have a comparable budget the next time they played city rivals CR Flamengo, one of the wealthiest clubs in Brazil. Plans to renovate the training complex were held up by municipal ownership of the land. After delays in payment, a local judge in May 2024 suspended the contract by which 777 Partners took over Vasco da Gama, in a preliminary ruling.[11]
Standard Liège
[edit]
In March 2022, 777 Partners bought 100% of Standard Liège in the Belgian Pro League for €55 million.[19] The fans protested in September 2023 over what they believed to be a lack of investment and ambition.[20] In December 2023, Standard Liège was given an indefinite transfer ban by national authorities for alleged delays in paying taxes, salaries and transfer fees.[21]
In May 2024, former Standard owner Bruno Venanzi and the former owners of the club's Stade Maurice Dufrasne demanded the seizure of 777's assets in Belgium over alleged non-payment.[1] Later that month in protest against 777, Standard fans blocked the team bus from leaving the training center before a game against Westerlo, leading to the game being postponed.[22] A court ruled that 777's assets in Belgium could be seized.[3]
After 777's soccer clubs passed into ownership of A-CAP, the latter put Standard up for sale in September 2024.[23]
Red Star
[edit]777 Partners bought Red Star FC of the French third-tier Championnat National in April 2022. The club was founded in 1897 by Jules Rimet, who was later president of FIFA. The takeover was met with backlash due to the club's working-class and left-wing history, and concerns that the club would become a farm team for 777's other assets. Former presidential candidate Jean-Luc Mélenchon was one of several politicians to sign a letter published in Le Monde, stating "For us, Red Star is a common good that cannot be sacrificed on the altar of profit."[24] Éric Coquerel, the parliamentary deputy whose constituency includes Red Star's home of Saint-Ouen-sur-Seine, has campaigned for laws against multi-club ownership.[25] Red Star won promotion to Ligue 2 in 2024.[26]
Melbourne Victory
[edit]
In October 2022, 777 Partners bought a minority stake in Melbourne Victory FC of the Australian A-League Men[27] for AU$8.7 million. The following January, the club's shareholders voted in favor of allowing 777 Partners to secure up to 70% over the next five years, in exchange for AU$30 million in investment.[28]
The voluntary administration of 777 Partners' Australian airline Bonza in 2024 meant that Melbourne Victory were sponsored by AIA Group for the playoffs that year, before a long-term deal with Turkish Airlines could begin in 2025.[11]
Hertha BSC
[edit]The company took a 64.7% stake in Hertha BSC of the German Bundesliga in March 2023, after its sale by Lars Windhorst, who had been majority shareholder since 2019.[29] Due to German football's 50+1 rule, 777 does not control the club. The company faced protests from Hertha's fans.[25]
In May 2024, The Athletic reported that fans were less antagonistic toward 777 at Hertha Berlin than at other clubs in their portfolio, partly due to the controversies and low points of Windhorst's ownership.[11]
Everton bid
[edit]In September 2023, 777 Partners agreed to buy Farhad Moshiri's 94.1% shareholding in English Premier League team Everton F.C..[30] In April 2024, with the deal not complete and after the 777-owned Australian airline Bonza entered voluntary administration, Everton called upon the services of insolvency advisers Teneo.[31] Amid lawsuits against 777 Partners in other countries, the Everton Shareholders' Association wrote to Moshiri requesting that he terminate the deal.[32]
777 enlisted B. Riley Financial for advice to complete the deal.[33] According to 777's own lawyers, Wander and Pasko resigned as managers of the company on May 6, 2024 but remained as its 100% owners.[34] On June 1, 2024 the deadline for the deal to be completed expired.[35][36]
Aviation
[edit]_Boeing_737_MAX_8_parked_at_Sunshine_Coast_Airport.jpg)
777 owns low-cost carrier Flair Airlines.[8] In June 2022, the Canadian Transportation Agency ruled that Flair is a Canadian airline and can fly domestically, as 777 owns 25% of the shares and had limited its influence on the board since the beginning of the CTA investigation.[37]
On March 11, 2023, Airborne Capital Ltd. seized four of its planes operated by Flair over alleged non-payment. In a press conference, Flair CEO Stephen Jones suggested the seizures were motivated by competitors, and that the airline owed around US$1 million on the leases, and was in the process of making payment when the seizures occurred.[4][38] The lessor, Airborne alleged that Flair had repeatedly missed payments amounting to several millions of dollars over a period of five months. Flair used other aircraft to continue to operate its schedule.[39] In January 2024, it was reported that the lessors had filed claims at the UK High Court for costs and that there had been outstanding payments of $1.8 million on the four aircraft when notice of default was served.[40]
From January 2013 until it entered voluntary administration in April 2024, 777 Partners owned Australian airline Bonza.[41][5] 777 Partners, not the airline, was responsible for the failed lease payments.[42] Bonza's administrators made all of the airline's staff redundant in June 2024 and voted to wind up the company on July 2. The administrators said "Whilst 777 Partners did provide funding, the funding was insufficient for the level of debt incurred, which continued to increase, particularly from November 2023 to the date of our appointment."[43]
In September 2024, the United States Department of Justice opened an investigation into 777 Partners and its investor A-CAP regarding allegations of money laundering.[44]
Other investments
[edit]In 2019, 777 Partners bought the London Lions, London's sole men’s professional basketball team. They then invested £7 million for 45% of the British Basketball League (BBL). 777 sold a slight minority stake in the London Lions to O.G. Anunoby and became the first British team to ever qualify for EuroCup playoffs.[45]
In May 2024, British Basketball revoked the license of the operating company behind the BBL, due to concerns over its financing.[6] The BBL folded and was replaced by Super League Basketball.[46] In August 2024, administrators Hudson Weir allowed the London Lions to be sold to Tesonet, the creators of NordVPN and owners of Lithuanian team BC Žalgiris. The new owners defended their decision to keep Lenz Balan, former vice president of 777 Partners, as CEO of the Lions.[46]
In 2022, 777 invested in STX Entertainment, a global film studio known for producing films such as Molly's Game, The Irishman, and Ferrari.[47]
Controversy
[edit]During the negotiations to buy Vasco, Brazilian newspaper O Globo revealed that Wander had been convicted in 2004 for ordering cocaine in the mail while a 22-year-old student of the University of Florida.[8][48] Facing a possible 26-year sentence, he pleaded no contest and received 15 years of probation, that ended in 2018.[49][8] Wander's conviction[50][51][52][53] has been brought up in the media, and in an interview with the Financial Times he called it a "stupid college thing" and a "perfect opportunity for those people that are haters to try to destroy you with things that are somewhat meaningless".[54]
Norwegian football investigation website Josimar wrote in 2023 that 777 was facing allegations of financial impropriety, including fraud and unpaid bills. 777 condemned Josimar's article as "wholly misleading".[25]
777 Partners have been sued by multiple organizations for unpaid debts and contract breaches with lawsuits describing their financial practices as a "house of cards"[55][2][56] and a "sprawling fraudulent enterprise".[57][58]
In May 2024, American insurance firm Advantage Capital Holdings LLC (A-CAP), a major investor in 777 Partners, hired Moelis & Company to review 777's portfolio. A-CAP's loans had been secured against 777's assets.[59] In July, A-CAP wrote to 777 Partners' soccer clubs to inform them that it was the new owner.[7]
References
[edit]- ^ a b Morgan, Tom (May 7, 2024). "Everton's prospective owners 777 face legal demand for seizure of assets in Belgium". The Daily Telegraph. Retrieved May 7, 2024.
- ^ a b Slater, Matt. "Would-be Everton owners 777 described as 'crumbling house of cards' in lawsuit". The Athletic. Retrieved March 15, 2024.
- ^ a b "More trouble in Belgium for Miami-based 777 Partners after court authorizes seizure of assets". Associated Press. May 16, 2024. Retrieved May 18, 2024.
- ^ a b "Flair apologizes for cancellations after plane seizures, says leasing company in talks with competitor". CTVNewsEdmonton. March 14, 2023.
- ^ a b Visontay, Elias; Transport, Elias Visontay; reporter, urban affairs (April 30, 2024). "Bonza enters voluntary administration after abruptly cancelling all flights across Australia". The Guardian. ISSN 0261-3077. Retrieved April 30, 2024.
- ^ a b "British Basketball League operators have licence terminated over finances". The Guardian. June 14, 2024. Retrieved July 13, 2024.
- ^ a b "Le Standard a changé de propriétaire : voici ce que révèlent les nouvelles accusations contre 777 Partners et A-CAP au Tribunal de New York" [Standard has changed owner: here is what the new accusations against 777 Partners and A-CAP at the New York Court reveal] (in French). RTBF. September 3, 2024. Retrieved October 3, 2024.
- ^ a b c d Aarons, Ed (April 4, 2023). "Collective goals: multi-club ownership is changing world football's landscape". The Guardian. Retrieved May 1, 2023.
- ^ Alba, Jesús (October 19, 2020). "'777 Partners' adquiere el paquete de Rodri y eleva su capital al 7,5%" ['777 Partners' acquires Rodri's stake and raises its capital to 7.5%]. Diario de Sevilla (in Spanish). Retrieved May 1, 2023.
- ^ Florido, E. (December 18, 2021). "Accionistas Unidos denuncia el uso del escudo del Sevilla por 777 Partners" [Shareholders Unidos denounce use of Sevilla badge by 777 Partners] (in Spanish). Málaga Hoy. Retrieved May 4, 2024.
- ^ a b c d e f g Boyland, Patrick; Lang, Jack (May 16, 2024). "How the crisis gripping 777 Partners is affecting the clubs in their portfolio". The New York Times. Retrieved May 18, 2024.
- ^ "El multimillonario ruso Oleg Boyko reclama las acciones de los americanos en el Sevilla FC" [Russian multimillionaire Oleg Boyko demands the Americans' shares in Sevilla FC]. ABC (in Spanish). May 13, 2024. Retrieved May 18, 2024.
- ^ "Italian club Genoa bought by U.S. investment firm 777 Partners". Reuters. September 23, 2021. Retrieved May 1, 2023.
- ^ "Genoa sack Shevchenko after only two months in charge". beIN Sports. January 15, 2022. Retrieved May 1, 2023.
- ^ Johnson, Jonathan (May 17, 2022). "American owned clubs struggle: Bordeaux, Genoa and Venezia sought stability but found relegation". CBS Sports. Retrieved May 1, 2023.
- ^ "Brazil's Vasco da Gama sells $333m stake to US investor 777 Partners". Inside World Football. February 22, 2022. Retrieved May 23, 2023.
- ^ "Vasco faz acordo para vender 70% do clube por R$ 700 milhões" [Vasco reach agreement to sell 70% of the club for R$700 million]. O Estado (in Portuguese). February 21, 2022. Retrieved May 1, 2023.
- ^ "Furioso, Luva de Pedreiro protesta contra 777 Partners após derrota do Vasco" [Furious, Luva de Pedreiro protest against 777 Partners after Vasco defeat]. Terra (in Portuguese). July 3, 2023. Retrieved September 15, 2023.
- ^ "Le Standard de Liège officialise sa reprise par le fonds d'investissement américain 777 Partners" [Standard Liège confirm their acquisition by the American investment firm 777 Partners]. L'Équipe (in French). March 12, 2022. Retrieved May 1, 2023.
- ^ "« Sans pognon, pas d'ambition » : le message des supporters du Standard à 777 Partners avant le match contre le RWDM (photo)" ["Without money, no ambition": Standard supports' message to 777 Partners before the match against RWDM (photo)]. Le Soir (in French). September 2, 2023. Retrieved September 23, 2023.
- ^ "Standard Liege confident transfer ban will be short-lived". Reuters. December 21, 2023. Retrieved May 2, 2024.
- ^ "Standard Liège game off after fans block team bus in protest against 777 Partners". The Guardian. Associated Press. May 10, 2024. Retrieved May 12, 2024.
- ^ Sauvage, Kevin (September 5, 2024). "Vente du Standard: aucune offre concrète n'a été faite mais A-CAP reste confiante" [Sale of Standard: no concrete offer has been made but A-CAP remain confident]. Le Soir (in French). Retrieved October 3, 2024.
- ^ "French left cries foul over US takeover of Red Star soccer club". France 24. May 13, 2022. Retrieved May 1, 2023.
- ^ a b c Yaffe, Simon (September 23, 2024). "Everton takeover: What might club & fans expect from 777 Partners?". BBC Sport. Retrieved May 2, 2024.
- ^ "National. Le Red Star officiellement promu en Ligue 2 malgré sa défaite contre Dijon" [National. Red Star officially promoted to Ligue 2 despite their defeat to Dijon]. Ouest-France (in French). April 19, 2024. Retrieved May 2, 2024.
- ^ Monteverde, Marco (October 5, 2022). "A-League club joins portfolio of Miami-based 777 Partners". News.com.au. Retrieved May 1, 2023.
- ^ Graham, Jackson (January 31, 2023). "Victory shareholders back US private equity bid, former director warns of 'bad deal'". The Sydney Morning Herald. Retrieved September 15, 2023.
- ^ Fahey, Ciáran (March 11, 2023). "Miami-based 777 Partners takes 64.7% stake in Hertha Berlin". Associated Press. Retrieved May 1, 2023.
- ^ "Everton's Farhad Moshiri agrees sale of club to American firm 777 Partners". The Guardian. September 15, 2023. Retrieved September 15, 2023.
- ^ Goodley, Simon (April 30, 2024). "Everton call in insolvency advisers amid fresh doubt over 777 takeover". The Guardian. Retrieved May 2, 2024.
- ^ Hafez, Shamoon (May 7, 2024). "Everton group call for end to takeover 'farce'". BBC Sport. Retrieved May 8, 2024.
- ^ Hafez, Shamoon (May 10, 2024). "777 call in finance experts as Everton uncertainty grows". BBC Sport. Retrieved May 12, 2024.
- ^ Agini, Samuel; McCrum, Dan; Smith, Ian (May 24, 2024). "How a bet on Everton engulfed a football investor and its financial backers". Financial Times. Retrieved May 27, 2024.
- ^ Ogden, Mark (June 1, 2024). "Everton seek new buyer after deal with 777 Partners collapses". ESPN. Retrieved June 9, 2024.
- ^ Everton and 777 Partners; Where the failed takeover leaves the Grand Old Firm New York Times June 3, 2024
- ^ Potkins, Meghan (June 1, 2022). "Flair Airlines can keep flying in Canada, regulator rules". Financial Post. Retrieved May 5, 2024.
- ^ Atkins, Eric (March 11, 2023). "Flair Airlines has four airplanes seized after failing to pay the leasing company, causing several cancelled flights". The Globe and Mail. Archived from the original on March 11, 2023.
- ^ Mulcahy, Karyn (March 14, 2023). "Flair apologizes for cancellations after plane seizures, says leasing company in talks with competitor". CTV News. Retrieved March 14, 2023.
- ^ "Lessors chase 777 Partners for $28m alleging non-payment for Flair 73…". January 10, 2024. Archived from the original on January 10, 2024.
- ^ Dye, Josh (February 1, 2023). "The US private equity giant funding Australia's new budget airline Bonza". ABC News. Retrieved May 1, 2023.
- ^ Nelson, Jake (May 6, 2024). "Exclusive: 777 Partners was responsible for paying for Bonza's Leases". Australian Aviation. ISSN 0813-0876. Retrieved May 8, 2024.
- ^ Nelson, Jake (July 2, 2024). "All over for Bonza as creditors vote to liquidate". Australian Aviation. Retrieved August 30, 2024.
- ^ Baker, Emily; Potaka, Elise; Sonnenschein, Lara (September 30, 2024). "US authorities investigating whether budget airline Bonza's investors broke money laundering laws". Australian Broadcasting Corporation. Retrieved October 4, 2024.
- ^ "O.G. Anunoby becomes part-owner of the London Lions". Eurohoops. April 19, 2023. Retrieved May 23, 2023.
- ^ a b Dalleres, Frank (September 1, 2024). "Exclusive: London Lions' new owners defend controversial CEO appointment". City A.M. Retrieved September 4, 2024.
- ^ D'Alessandro, Anthony; Wiseman, Andreas (July 27, 2022). "STX & Lionsgate In Talks For Strategic Partnership". Deadline Hollywood. Retrieved May 23, 2023.
- ^ "Vasco: condenação de Josh Wander por tráfico de 31g de cocaína, de 2004, repercute nas redes sociais; 777 diz que 'incidente ficou para trás'" [Vasco: Josh Wander's sentence for trafficking 31g of cocaine, in 2004, reverberates on social networks; 777 says that 'the incident stays in the past']. O Globo (in Portuguese). March 18, 2022. Retrieved May 1, 2023.
- ^ "Alabama man indicted, faces murder charges". The Red & Black. February 11, 2004. Retrieved May 1, 2023.
- ^ Kay, Oliver (September 20, 2023). "Everton's proposed takeover by 777 Partners underlines the depth of their desperation". The New York Times. Retrieved October 5, 2024.
Even if 777 co-founder Josh Wander's 20-year-old conviction for drug trafficking is not an issue, [...]
- ^ Douglas, Mark (September 16, 2023). "Who are 777 Partners? What we know about Everton's buyers, the other clubs they own and the takeover explained". i. Retrieved October 5, 2024.
Given it is a spent conviction, it is not expected to stop him from being named as a director.
- ^ Benge, James (September 15, 2023). "Everton set to be sold to US investment fund 777 Partners, pending official Premier League approval". CBS Sports. Retrieved October 5, 2024.
The firm strenuously deny those allegations and have labelled a drug conviction against Wander, [...]
- ^ Powell, Dave (September 14, 2023). "How long Everton takeover could take amid 777 Partners talks with Farhad Moshiri". Liverpool Echo. Retrieved October 5, 2024.
It is highly unlikely that such a conviction from 20 years ago would be a barrier, particularly after Wander was elected to the board of directors of the European Clubs Association [...]
- ^ Powell, Dave (September 12, 2023). "Who are 777 Partners? US firm in 'advanced talks' over Everton takeover". Liverpool Echo. Retrieved September 12, 2023.
- ^ Obra Capital Management LLC v 777 Partners LLC and Steven W. Pasko (New York Supreme Court), Text.
- ^ Dolmetsch, Chris; Tan, Gillian (March 13, 2024). "Would-Be Everton Owner 777 Partners Faces Lawsuit Over Asset Transfers". Insurance Journal. Retrieved March 15, 2024.
- ^ "The reinsurer under fire over owner's football team bid". www.insurancebusinessmag.com. Retrieved March 15, 2024.
- ^ "The Mystery Company With One Foot in the Premier League". The New York Times. October 10, 2023. Retrieved March 15, 2024.
- ^ Hellier, David (May 28, 2024). "777's Football Empire Under Review After Lender Hires Moelis". Insurance Journal. Bloomberg. Retrieved October 3, 2024.