EXCLUSIVE: Leeds United write to Everton’s future owners 777 Partners to tell them they will sue the club for £300m

Leeds, Burnley and Leicester have written 777 Partners in unison.

If Everton is found to have violated the spending guidelines, they aim to file a lawsuit.
To listen to the most recent edition of Mail Sport’s “It’s All Kicking Off,” click HERE.

Three of Everton’s competitors have informed the American investment company that they plan to sue the club for £300 million if they are found in violation of spending regulations later this month, potentially putting the proposed sale to 777 Partners at risk once again.

Mail Sport has learned that BurnleyLeeds and Leicester have written a joint letter to 777 asking them if they are aware of their plans to sue Everton pending the outcome of a Premier League independent tribunal on 25 October.

The trio’s letter to 777 was initially addressed to the Premier League, who are understood to have replied acknowledging the correspondence and stating they will pass on the information to Everton’s would-be new owners.

The three clubs are unhappy that Everton’s charges were not dealt with last season as they believe the delay may have helped Everton escape relegation by avoiding a points deduction, with Leeds and Leicester going down on the last day of the season as Sean Dyche’s side survived by two points.

Mail Sport revealed before the end of last season that five clubs (also including Southampton and Nottingham Forest) had written to the Premier League arguing that they would deserve compensation if Everton were found guilty, and the matter has now been escalated ahead of the independent hearing.Everton's prospective owners 777 Partners, led by Josh Wander, have loaned the club £20mThe Premier League has been officially notified in writing by Burnley, Leeds, and Leicester that they intend to file a lawsuit. It is believed that each club will want £100 million in damages based on the loss of top-flight revenue for one season.

Burnley was kicked out of the Premier League the season before Everton’s expenditures caused controversy as they reported £372 million in three-year rolling losses, but the club was exempt from charges since it was given exemptions attributed to Covid.

Clubs can also claim allowances for losses directly attributable to Covid. In their most recent accounts, Everton say Covid losses amounted to £90.4m over the last three years, although that only brings their total loss down to £223.1m — well over the limit.

Any legal action from other clubs would be serious blow to 777’s plans to buy Everton, which is already under scrutiny due to unanswered questions over the source and sufficiency of their funding.

The Miami-based investment firm have loaned Everton around £20m to help with cash-flow issues after agreeing a deal in principle to buy the club from Farhad Moshiri last month, but the club remain in a perilous financial position which would be exacerbated by a lengthy court case.

Moshiri has made it clear he will not provide any more funding after spending over £750m during a turbulent seven-year period in charge, while the club also have to find around £300m to complete the building of their new stadium at Bramley-Moore Dock.


Be the first to comment

Leave a Reply

Your email address will not be published.