777 Partners, Everton and the Murky World of Multi-Club Ownership in Football.

In recent weeks, Everton Football Club, based in Liverpool, England, is being taken over by an American investment firm called 777 Partners. 777 has a murky history and was at the center of a Washington Post article detailing its exploitative business practices that are not dissimilar to payday loans with extremely high-interest rates. 777 also has been buying up football clubs from around the world rapidly. The head of 777, Josh Wander, also has a colorful history; according to the Post article, in his student days, he was charged with drug trafficking after allegedly opening a package containing cocaine that the federal government was tracking. He pleaded no contest and avoided prison time but was sentenced to 14 years on probation, but surely that will be a black mark against the Premier League’s recently beefed up Owners and Directors Test has any teeth to it. One has to feel for longtime Everton supporters who have had to deal with their club struggling both on and off the pitch and could be taken over by a charlatan.

The backdrop to 777 & Everton is the growth of multi-club ownership in football, where one person, or usually an investment group, buys into several clubs worldwide. There are numerous examples, the most famous of which is the City Football Group (CFG), who owns Manchester City and clubs in Australia, the U.S., and elsewhere. According to an article in ESPN, one of the main benefits of owning several clubs is that if one club gets relegated, the financial impact won’t be as profound if the others in the network are performing strongly. Another reason that multi-club ownership is widespread is because it allows big clubs to loan out young players to smaller clubs within their network. However, there are also numerous downsides, and chief among them is a loss of identity and a corporatization of the football ecosystem, particularly in Europe. In my view, the multi-club models are bad for the future of sport because they whittle clubs down to investments and not what clubs should represent; they should represent civic pride and, most importantly, the values of their supporters.