Everton confirm 777 Partners’ proposed takeover has COLLAPSED after the club’s sale purchase agreement with the crisis-stricken US investment firm expires

• Farhad Moshiri had granted 777 Partners a two-week extension to their deadline 
• The Miami-based investment firm had been in talks over a deal since September
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Everton owner Farhad Moshiri is now officially able to advance talks with fresh buyers for the club after a protracted takeover from controversial US firm 777 Partners collapsed on Saturday morning.

The club said they will ‘assess all options for future ownership’ after 777 missed a 5am deadline to provide funds to proceed with a sale and purchase agreement (SPA) for Moshiri’s 94.1 per cent stake.

British-Iranian businessman Moshiri was not minded to grant them an extension after already providing 777 an extra two weeks of wiggle room. He is now free to enter into discussions with other suitors.

One of those is Crystal Palace shareholder John Textor, who last month publicly said he is actively looking to sell Eagle Football’s 40 per cent holding in the Selhurst Park club. He is exploring buying Everton but this is complicated as he would have to sell his Palace stake first.

Other parties are yet to publicly declare their interest but Moshiri told Everton’s Fan Advisory Board last week that he had received ‘unsolicited approaches’ to buy the club. He could not engage with them due to the SPA with 777.

Sources close to Everton have consistently insisted that the short-term funding of the club is not in doubt, but 777 loaned them more than £200million to cover working capital and construction costs for a new dockside stadium at Bramley Moore.

Mail Sport reported earlier this week how the Toffees will not be bullied into a ‘fire sale’ of key players but there is no doubt they will be forced to cash in on some assets this summer – which might have to be done before June 30 to balance the books amid financial breaches.

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Jarrad Branthwaite has consistently been linked away from Goodison Park but Everton have noted the fees Manchester clubs paid for Harry Maguire and Josko Gvardiol – both more than £75m – in recent years and would demand similar or more for the left-footed Englishman.

Belgian midfielder Amadou Onana is poised to leave with several European clubs keen, while Dominic Calvert-Lewin has been offered a new deal as other teams circle. Returning loanees Neal Maupay and Mason Holgate will likely be moved on to free up some wage budget.

The club is not expected to have a short-term cash flow crisis due to broadcast money and Premier League merit payments based on the recently-finished season will be coming within the next few weeks.

Evertonian businessmen Andy Bell and George Downing could help finance the club until a more long-term solution is found. The pair already have money tied up in the club and it was previously suggested they could form a consortium with MSP Sports Capital.

Though the short-term future looks uncertain, fans will have breathed a sigh of relief when 777’s deal collapsed. The Miami-based firm has barely gone a week without negative headlines since the agreement was made with Moshiri.

Last month, the company was accused of fraud in a New York legal case. Two London-based asset management firms accused 777 of pledging £279m in collateral assets despite knowing that had been pledged to another lender – by law known as double-pledging – or did not exist.

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In that case, co-founders Josh Wander and Steve Pasko were accused of ‘operating a giant shell game at best, and an outright Ponzi scheme at worst’. One of their other firms, an airline called Bonza, went into administration a fortnight ago and left passengers stranded in Australia.

Belgian club Standard Liege – owned by 777 – were forced to postpone a league game last month after protesting fans blocked the team coach from reaching the stadium. The 10-time Belgian champions are under transfer embargo for financial issues for which fans blame 777.

In a statement, Everton said: ‘The club’s board of directors recognises the considerable level of financial support 777 Partners has provided the club over recent months and would like to take this opportunity to thank them for this.

‘The club will continue to operate as usual, while it works with Blue Heaven Holdings to assess all options for the club’s future ownership. The board of directors would like to thank everyone connected to Everton for their patience over recent months.’

The collapse of the 777 deal means Everton’s debts have grown by £200m – and they will have to pay this back to the US firm at some stage, though this does not need to be immediate. In their latest set of accounts, the club lost £89.1m and they were docked eight points last season for alleged financial breaches.