The American investment firm 777 Partners, known for its bid to buy the English Premier League soccer team Everton, is facing serious allegations of fraud and financial mismanagement. Leadenhall Capital Partners, a lender to 777 Partners, has filed a lawsuit accusing the firm of running a yearslong fraud scheme worth hundreds of millions of dollars.
According to the lawsuit filed in federal court in New York, Leadenhall provided 777 Partners with over $600 million in financing, only to discover that $350 million in assets serving as collateral for the loans were either not in 777’s control or had already been pledged to other lenders. This revelation has raised doubts about 777 Partners’ financial health, especially as the firm has claimed to have $10 billion in assets in the past.
The lawsuit could have immediate implications for 777’s bid to buy Everton, as the Premier League has not approved the sale and the financially struggling club is seeking alternate investors. Additionally, 777 Partners’ portfolio includes ownership stakes in teams in Australia, Brazil, Belgium, France, and Germany, raising concerns about the broader impact of the allegations on the world soccer market.
The lawsuit names 777 Partners’ owners, Steven Pasko and Josh Wander, as well as their biggest financial backer, Kenneth King, and his firm, ACAP. While ACAP has called the claims “baseless,” it has not denied holding the first claim on 777’s assets.
Despite the accusations, 777 Partners has not responded to requests for comment on the lawsuit or its allegations. In an open letter to Everton fans last year, Mr. Wander acknowledged questions about his company’s finances but assured fans that the truth was “far more boring than the fiction.”
The lawsuit details how Leadenhall began to question its relationship with 777 Partners after receiving an anonymous tip in 2022. The tip alleged that Mr. Wander had pledged assets he did not own or had already pledged elsewhere to secure new loans. After confronting Mr. Wander, Leadenhall discovered that all of 777’s assets were already pledged to ACAP, leading to accusations of operating a Ponzi scheme.
As the allegations against 777 Partners continue to unfold, fans and executives at other soccer clubs owned by the firm may be concerned about the stability of their teams. The situation has already led to protests at Red Star F.C. in Paris, with fans handing out fake banknotes bearing Mr. Wander’s image and the words “In Josh We Don’t Trust.”
Overall, the lawsuit against 777 Partners has cast a shadow over the firm’s bid for Everton and raised questions about the company’s financial practices, potentially impacting the broader world soccer market.
