777 Partners

Edit links
From Wikipedia, the free encyclopedia

Lawrence & 777 Partners
Company typePrivately-held investment company
FoundedSeptember 1, 2015; 8 years ago (2015-09-01)
Founder
  • Steven Pasko
  • Josh Wander
Headquarters
Miami, Florida
Number of locations
3 (Miami, London, New York City)
Key people
  • Steven Pasko (co-founder and managing partner)
  • Josh Wander (co-founder and managing partner)
Subsidiaries

777 Partners is an American private investment company based in Miami. Founded in 2015, it has acquired several soccer teams such as Genoa C.F.C. in Italy, Standard Liège in Belgium, Red Star F.C. in France, CR Vasco da Gama in Brazil, and Hertha BSC in Germany. It has minority shareholdings in Sevilla FC in Spain and Melbourne Victory FC in Australia. The company owns the London Lions basketball team. The company also owns the low-cost carriers Flair Airlines in Canada and Bonza in Australia.

History[edit]

Soccer[edit]

777 Partners' first investment in soccer was to purchase a minority stake in Spanish La Liga club Sevilla FC in 2018.[1] In 2020, it elevated its share to 7.5%.[2]

In September 2021, 777 Partners bought 99.99% of Italian Serie A club Genoa C.F.C., the country's oldest club, founded in 1893. It became the sixth club in the league to have an American owner, and the transaction to buy the club from long-term owner Enrico Preziosi was estimated at €150 million.[3] The club hired former A.C. Milan and Ukraine striker Andriy Shevchenko in November, firing him in January 2022;[4] Genoa ended the season relegated (as did another US-owned team, Venezia FC),[5] but were immediately promoted back into the top division in May 2023.

In February 2022, 777 Partners bought 70% of CR Vasco da Gama, a Campeonato Brasileiro Série A club from Rio de Janeiro for R$700 million, valuing the club at R$1.7 billion. The transaction was the biggest in the history of Brazilian football, and came off the back of a change in legislation allowing clubs to adopt new legal structures by becoming limited companies and sourcing finance from private equity markets.[6][7] Fans protested against 777 Partners in the 2023 Campeonato Brasileiro Série A season, as the club found itself in the relegation zone.[8]

During the negotiations to buy Vasco, Brazilian newspaper O Globo revealed that Wander had been convicted in 2004 for ordering cocaine in the mail while a 22-year-old student of the University of Florida.[1][9] Facing a possible 26-year sentence, he pleaded no contest and received 15 years of probation, that ended in 2018.[10][1] Wander's conviction has been brought up in the media, and in an interview with the Financial Times he called it a "stupid college thing" and a "perfect opportunity for those people that are haters to try to destroy you with things that are somewhat meaningless".[11]

In March 2022, 777 Partners bought 100% of Standard Liège in the Belgian Pro League for €55 million.[12] The fans protested in September 2023 over what they believed to be a lack of investment and ambition.[13]

777 Partners bought Red Star F.C. of the French third-tier Championnat National in April 2022. The club was founded in 1897 by Jules Rimet, who was later president of FIFA. The takeover was met with backlash due to the club's working-class and left-wing history, and concerns that the club would become a farm team for 777's other assets. Former presidential candidate Jean-Luc Mélenchon was one of several politicians to sign a letter published in Le Monde, stating "For us, Red Star is a common good that cannot be sacrificed on the altar of profit."[14]

In October 2022, 777 Partners bought a minority stake in Melbourne Victory FC of the Australian A-League Men[15] for AU$8.7 million. The following January, the club's shareholders voted in favor of allowing 777 Partners to secure up to 70% over the next five years, in exchange for AU$30 million in investment.[16]

The company took a 64.7% stake in Hertha BSC of the German Bundesliga in March 2023, after its sale by Lars Windhorst, who had been majority shareholder since 2019.[17] In September 2023, 777 Partners agreed to buy Everton F.C. by purchasing the 94.1% owned by Farhad Moshiri.[18][19]

Other investments[edit]

In 2019, 777 Partners bought the London Lions, London's sole men’s professional basketball team. They then invested £7 million for 45% of the British Basketball League (BBL). Under 777, the Lions and the BBL have garnered significant attention, having sold a slight minority stake in the London Lions to O.G. Anunoby and becoming the first British team to ever qualify for EuroCup playoffs.[20]

Outside of sports, 777 has assets in aviation. It owns Canadian company Flair Airlines and Australian based Bonza, both of which are low-cost carriers.[1][21] It also invests in and develops travel technology under its "GO7" subdivision.[22]

In 2022, 777 invested in STX Entertainment, a global film studio known for producing films such as Molly's Game, The Irishman, and Ferrari.[23]

Aircraft seizures[edit]

On March 11, 2023, Airborne Capital Ltd. seized four of its planes operated by Flair over alleged non-payment. In a press conference, Flair CEO Stephen Jones suggested the seizures were motivated by competitors, and that the airline owed around US$1 million on the leases, and was in the process of making payment when the seizures occurred.[24][25] The lessor, Airborne alleged that Flair had repeatedly missed payments amounting to several millions of dollars over a period of five months. Flair used other aircraft to continue to operate its schedule.[26] In January 2024, it was reported that the lessors had filed claims at the UK High Court for costs and that there had been outstanding payments of $1.8 million on the four aircraft when notice of default was served.[27]

Controversy[edit]

777 Partners have been sued by multiple organizations for unpaid debts and contract breaches with lawsuits describing their financial practices as a "house of cards"[28][29][30] and a "sprawling fraudulent enterprise".[31][32]

References[edit]

  1. ^ a b c d Aarons, Ed (April 4, 2023). "Collective goals: multi-club ownership is changing world football's landscape". The Guardian. Retrieved May 1, 2023.
  2. ^ Alba, Jesús (October 19, 2020). "'777 Partners' adquiere el paquete de Rodri y eleva su capital al 7,5%" ['777 Partners' acquires Rodri's stake and raises its capital to 7.5%]. Diario de Sevilla (in Spanish). Retrieved May 1, 2023.
  3. ^ "Italian club Genoa bought by U.S. investment firm 777 Partners". Reuters. September 23, 2021. Retrieved May 1, 2023.
  4. ^ "Genoa sack Shevchenko after only two months in charge". beIN Sports. January 15, 2022. Retrieved May 1, 2023.
  5. ^ Johnson, Jonathan (May 17, 2022). "American owned clubs struggle: Bordeaux, Genoa and Venezia sought stability but found relegation". CBS Sports. Retrieved May 1, 2023.
  6. ^ "Brazil's Vasco da Gama sells $333m stake to US investor 777 Partners". Inside World Football. February 22, 2022. Retrieved May 23, 2023.
  7. ^ "Vasco faz acordo para vender 70% do clube por R$ 700 milhões" [Vasco reach agreement to sell 70% of the club for R$700 million]. O Estado (in Portuguese). February 21, 2022. Retrieved May 1, 2023.
  8. ^ "Furioso, Luva de Pedreiro protesta contra 777 Partners após derrota do Vasco" [Furious, Luva de Pedreiro protest against 777 Partners after Vasco defeat]. Terra (in Portuguese). July 3, 2023. Retrieved September 15, 2023.
  9. ^ "Vasco: condenação de Josh Wander por tráfico de 31g de cocaína, de 2004, repercute nas redes sociais; 777 diz que 'incidente ficou para trás'" [Vasco: Josh Wander's sentence for trafficking 31g of cocaine, in 2004, reverberates on social networks; 777 says that 'the incident stays in the past']. O Globo (in Portuguese). March 18, 2022. Retrieved May 1, 2023.
  10. ^ "Alabama man indicted, faces murder charges". The Red & Black. February 11, 2004. Retrieved May 1, 2023.
  11. ^ Powell, Dave (September 12, 2023). "Who are 777 Partners? US firm in 'advanced talks' over Everton takeover". Liverpool Echo. Retrieved September 12, 2023.
  12. ^ "Le Standard de Liège officialise sa reprise par le fonds d'investissement américain 777 Partners" [Standard Liège confirm their acquisition by the American investment firm 777 Partners]. L'Équipe (in French). March 12, 2022. Retrieved May 1, 2023.
  13. ^ "« Sans pognon, pas d'ambition » : le message des supporters du Standard à 777 Partners avant le match contre le RWDM (photo)" ["Without money, no ambition": Standard supports' message to 777 Partners before the match against RWDM (photo)]. Le Soir (in French). September 2, 2023. Retrieved September 23, 2023.
  14. ^ "French left cries foul over US takeover of Red Star soccer club". France 24. May 13, 2022. Retrieved May 1, 2023.
  15. ^ Monteverde, Marco (October 5, 2022). "A-League club joins portfolio of Miami-based 777 Partners". News.com.au. Retrieved May 1, 2023.
  16. ^ Graham, Jackson (January 31, 2023). "Victory shareholders back US private equity bid, former director warns of 'bad deal'". The Sydney Morning Herald. Retrieved September 15, 2023.
  17. ^ Fahey, Ciáran (March 11, 2023). "Miami-based 777 Partners takes 64.7% stake in Hertha Berlin". Associated Press. Retrieved May 1, 2023.
  18. ^ "Everton's Farhad Moshiri agrees sale of club to American firm 777 Partners". The Guardian. September 15, 2023. Retrieved September 15, 2023.
  19. ^ Panja, Tariq (October 10, 2023). "The Mystery Company With One Foot in the Premier League". The New York Times. ISSN 0362-4331. Retrieved October 12, 2023.
  20. ^ "O.G. Anunoby becomes part-owner of the London Lions". Eurohoops. April 19, 2023. Retrieved May 23, 2023.
  21. ^ Dye, Josh (February 1, 2023). "The US private equity giant funding Australia's new budget airline Bonza". ABC News. Retrieved May 1, 2023.
  22. ^ "Startup LCC Bonza launches operations with an "app-first approach" and "digitally-native and customer-centric strategy"". Future Travel Experience. February 10, 2023. Retrieved September 15, 2023.
  23. ^ D'Alessandro, Anthony; Wiseman, Andreas (July 27, 2022). "STX & Lionsgate In Talks For Strategic Partnership". Deadline Hollywood. Retrieved May 23, 2023.
  24. ^ "Flair apologizes for cancellations after plane seizures, says leasing company in talks with competitor". CTVNewsEdmonton. March 14, 2023.
  25. ^ Atkins, Eric (March 11, 2023). "Flair Airlines has four airplanes seized after failing to pay the leasing company, causing several cancelled flights". The Globe and Mail. Archived from the original on March 11, 2023.
  26. ^ Mulcahy, Karyn (March 14, 2023). "Flair apologizes for cancellations after plane seizures, says leasing company in talks with competitor". CTV News. Retrieved March 14, 2023.
  27. ^ "Lessors chase 777 Partners for $28m alleging non-payment for Flair 73…". January 10, 2024. Archived from the original on January 10, 2024.
  28. ^ Obra Capital Management LLC v 777 Partners LLC and Steven W. Pasko (New York Supreme Court), Text.
  29. ^ Slater, Matt. "Would-be Everton owners 777 described as 'crumbling house of cards' in lawsuit". The Athletic. Retrieved March 15, 2024.
  30. ^ Tan, Chris Dolmetsch, Gillian (March 13, 2024). "Would-Be Everton Owner 777 Partners Faces Lawsuit Over Asset Transfers". Insurance Journal. Retrieved March 15, 2024.{{cite web}}: CS1 maint: multiple names: authors list (link)
  31. ^ "The reinsurer under fire over owner's football team bid". www.insurancebusinessmag.com. Retrieved March 15, 2024.
  32. ^ "The Mystery Company With One Foot in the Premier League". New York Times. October 10, 2023. Retrieved March 15, 2024.

External links[edit]

Retrieved from "https://en.wikipedia.org/w/index.php?title=777_Partners&oldid=1219983483"