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The investor trying to take control of Everton Football Club has pushed back its target date for completing the deal as it scrambles to raise hundreds of millions of pounds to fund it.

Sky News has learnt that 777 Partners has told stakeholders, including the Premier League and prospective lenders, that it now expects its takeover of the Toffees to be finalised late next month.

It had been seeking to close the deal by the end of this week.

City sources said on Wednesday that 777 had also requested in recent days an extension to a repayment deadline for a loan of nearly £160m.

The money is owed to MSP Capital and the prominent Merseyside businessmen Andy Bell – founder of the investment platform AJ Bell – and George Downing, and is due to be repaid by next Monday.

It was unclear whether the lenders had responded formally yet to that request.

File photo dated 24/03/24 of the Everton club badge. Everton have been given an immediate two-point deduction for a breach of the Premier League’s profitability and sustainability rules for the period ending season 2022-23, the league has announced. Issue date: Monday April 8, 2024.
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Pic: PA

777, which owns a number of sports assets but has faced increasing scrutiny over the financial health of its affiliated businesses in industries such as reinsurance, has approached a significant number of potential lenders to help fund the Everton deal.

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Among them is Blue Owl Capital, a large US-based private credit provider which was said to have been involved in ongoing discussions with 777 as recently as Wednesday morning.

The Premier League has approved the takeover in principle but has stipulated a number of conditions which must be fulfilled in order for it to proceed.

Among them is that 777 deposits £60m into an escrow account for use by the club, and that it converts about £160m of loans it has already made to the Goodison Park club into equity.

It must also demonstrate that it has access to sufficient funding to complete the construction of Everton’s new stadium at Stanley Park.

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Everton have been regular strugglers in English football’s top flight in recent years – a far cry from their success in the 1980s, when they won several major honours.

The club has been owned for years by Farhad Moshiri, a British-Iranian businessman who has pumped an estimated £750m into it.

It has endured a particularly turbulent campaign because of two separate points deductions imposed by the Premier League for breaching Profit and Sustainability Rules.

The first, a 10-point deduction, was subsequently reduced to six on appeal.

The second, announced just days ago, saw Everton lose a further two points, hindering the club’s battle against relegation from the Premier League.

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Growing doubts about whether 777 will be able to complete the Everton takeover come amid a flurry of corporate activity involving Premier League clubs.

Manchester United recently saw the arrival of Ineos billionaire Sir Jim Ratcliffe as a minority shareholder, while Tottenham Hotspur chairman Daniel Levy last week confirmed that it was seeking new investors.

Brentford’s owner is contemplating a sale of a big stake in the club, while a roughly-10% shareholding in West Ham United is also on the market.

777 Partners declined to comment, while Blue Owl Capital did not respond to an emailed approach from Sky News.

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Ex-Post Office head of IT says Paula Vennells ‘hoped to avoid’ inquiry – and reveals she blocked her number

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Ex-Post Office head of IT says Paula Vennells 'hoped to avoid' inquiry - and reveals she blocked her number

A former Post Office executive has said she was forced to block ex-boss Paula Vennells’ phone number after the ex-CEO called multiple times asking for help to avoid an independent inquiry into the Horizon IT scandal.

Lesley Sewell, previously the company’s head of IT, told the Post Office inquiry on Thursday that former CEO Ms Vennells had reached out to her four times between 2020 and 2021.

Ms Sewell said that she blocked Ms Vennells’ number due to discomfort with the contact.

In her witness statement to the probe, Ms Sewell said that one of Ms Vennells’ emails referenced the need to fill in memory gaps regarding Horizon and “Project Sparrow”, a committee addressing issues with forensic accountants who identified flaws in the accounting system.

“Paula contacted me on four occasions in total. I recall blocking her number after the last call as I did not feel comfortable with her contacting me,” Ms Sewell said.

“I had not spoken to Paula since I had left POL [Post Office Limited] in 2015.”

Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA
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Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA

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According to Ms Sewell’s testimony, former chief executive Ms Vennells said that she had “been asked at short notice” to appear before a parliamentary select committee on “all things Horizon/Sparrow and need to plug some memory gaps”.

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Ms Sewell says Ms Vennells added: “My hope is this might help avoid an independent inquiry but to do so, I need to be well prepared.”

Ms Sewell, who struggled to contain her emotions and broke down in tears while giving her oath at the start of her inquiry evidence, was offered support and breaks as needed by chairman Sir Wyn Williams.

Sir Wyn told the former executive: “Ms Sewell, I appreciate this may be upsetting for you, Ms Price will ask you a number of questions in a proper and sensible manner, but if at any time you feel you need a break, just let me know, all right?”

Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA
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Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA

The Post Office has faced significant scrutiny following the ITV drama Mr Bates Vs The Post Office which highlighted the Horizon IT scandal.

The faulty system led to the prosecution of more than 700 sub-postmasters between 1999 and 2015, with many still awaiting full compensation despite government announcements regarding payouts for those with quashed convictions.

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London City Airport lands FitzGerald as first female boss

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London City Airport lands FitzGerald as first female boss

London City Airport will on Thursday name its first permanent female chief executive as it targets approval of an expansion plan that would create nearly 1,500 jobs.

Sky News understands that the Docklands airport has told staff that Alison FitzGerald, who has been co-CEO since January alongside finance chief Wilma Allan, has landed the role.

Ms FitzGerald has worked at City Airport – the capital’s fourth-busiest – for more than a decade, becoming chief information officer and then chief operating officer.

London City Airport 3
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A woman wearing a face mask walks by London City Airport, which suspended its operations during the pandemic

She replaces Robert Sinclair, who left in January after six years to become boss of the High Speed 1 rail link.

The airport is owned by a consortium of Canadian pension funds and Kuwait’s sovereign wealth fund, which have backed a plan to increase its annual passenger traffic from about 6.5m to 9m.

It is appealing against Newham Council’s rejection of a planning application that would see it extend operating hours at the site, which is popular with City commuters.

The airport’s proposals include no increase in the annual number of flights and, in what it claims is a first for a UK airport, a commitment that only cleaner, quieter, new generation aircraft will be allowed to fly in any extended periods.

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The runway at London City Airport

The appeal is being reviewed by the Independent Planning Inspector.

Its change of leadership makes London City the second of the capital’s airports to name a new CEO in quick succession, following the arrival at Heathrow of Thomas Woldbye last year.

“London City delivers one of the best passenger experiences in the UK and I’m committed to building on this success even further,” Ms FitzGerald said.

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Thames Water investors to quit boards amid spectre of bailout

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Thames Water investors to quit boards amid spectre of bailout

Representatives of Thames Water’s multinational syndicate of shareholders are poised to quit as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.

Sky News has learnt that a number of board members at companies connected to Kemble Water Finance, Thames’s parent, are expected to resign in the coming days.

City sources described the move as “the logical next step” after the owners of Britain’s biggest water utility said they would not commit more than £3bn to help upgrade its ageing infrastructure and shore up its debt-laden balance sheet.

A default on part of Thames Water‘s holding company debts last month has raised the prospect that the company is heading towards special administration, a form of insolvency that would effectively leave the government liable for managing a utility firm which serves nearly a quarter of Britain’s population.

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Thames Water under threat

Thames Water is owned by a group of sovereign wealth funds and pension funds from countries including Abu Dhabi, Australia, Britain, Canada and China.

A number of the investors are represented on boards which sit at various points in the group’s labyrinthine capital structure.

It was unclear on Wednesday whether Michael McNicholas, a representative of the giant Canadian pension fund Omers and who sits on the board of Thames Water Utilities Limited, was among those in the process of stepping down.

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Along with the rest of the privately owned water industry, Thames Water faces a crucial moment next month when Ofwat, the industry regulator, publishes its draft determination on companies’ five-year business plans.

The draft rulings will be subject to negotiation before final versions are published in December.

Thames Water and a spokesman for Kemble declined to comment.

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