Potential Everton FC buyer facing scrutiny amid reinsurer connections

Potential Everton FC buyer facing scrutiny amid reinsurer connections | Insurance Business Australia

Reinsurance

Potential Everton FC buyer facing scrutiny amid reinsurer connections

Club has reportedly violated sustainability rules for the previous year

Reinsurance

By
Kenneth Araullo

The proposed £500 million (approximately $631 million) acquisition of Premier League club Everton FC is facing uncertainty amid regulatory scrutiny involving the potential buyers’ corporate entities, with both the Bermuda Monetary Authority (BMA) and Utah insurance regulators raising concerns about the viability of the deal.

The club’s prospective owners, 777 Partners, are dealing with regulatory issues. According to Josimar, a major funding source for 777 Partners is its Class E Bermuda life reinsurer, 777 Re. This reinsurer, focused on life insurance and annuity business, is now under the administrative control of the Bermuda Monetary Authority (BMA).

As per a report from The Royal Gazette, these developments have cast significant doubt on 777 Partners’ ability to complete the Everton takeover. The BMA’s action reportedly restricts access to approximately £2.4 billion in funds necessary for the acquisition.

Moreover, 777 Partners is facing additional legal challenges and high-interest borrowing rates, as reported by Josimar. The group’s American insurance subsidiary, Haymarket, is also under scrutiny from the Utah Insurance Department.

Everton FC has encountered additional challenges, facing new disciplinary actions from the Premier League while appealing earlier sanctions. The club breached the Premier League’s profit and sustainability rules for the previous year and has reportedly violated these rules again this season, leading to potential further penalties.

The club is in the process of moving from Goodison Park to a new stadium at Bramley-Moore Dock, scheduled to open for the 2025-26 season. However, the cost of this project has escalated from £500 million to an estimated £760 million.