Any decision made by the Premier League over 777 Partners’ attempted takeover of Everton will have to be ratified by a new panel.
The process is an extra layer of scrutiny that is expected to unfold in the days after a call is made on whether a potential new owner is deemed suitable or not.
The checks will be carried out by a body called the Independent Oversight Panel, which has the power to send the case back to the Premier League board if it considers it did not reach a “reasonable” conclusion.
The panel was created after changes agreed by top-flight clubs in March of last year. The first decision to be reviewed was that of Sir Jim Ratcliffe’s acquisition of 25% in Manchester United earlier this year.
It is now six months since majority shareholder Farhad Moshiri announced he had struck a deal to sell his 94.1% stake in Everton to 777. At the time, those close to the deal said they hoped it would receive all necessary regulatory approval by the end of 2023, setting a 12-week timeframe that has now been exceeded by months.
While 777 was given the green light by the Financial Conduct Authority late last year, and the backing of the Football Association is not believed to be a stumbling block, its attempt to find a route through the Premier League’s Owners’ and Directors’ Test has dragged on. Publicly, the deal has been hit by controversy around 777 and the exploits of its network of linked companies in both football and business. Privately, it appears the Premier League has had to repeatedly approach the US group as part of efforts to analyse the viability of its plans. Meanwhile, 777 has committed almost £200m in loans to Everton as part of efforts to help the club meet its costs during the takeover process.
What that will be remains to be seen, but either way, the judgement will face an additional rung of assessment through the Independent Oversight Panel. That panel is chaired by Murray Rosen, KC, who oversees a group of between eight and 15 members at any one time. Once a decision has been reached under the Owners’ and Directors’ Test, Rosen is expected to appoint a “reviewer” or “reviewers” to form the panel and assess the call. They cannot hold an oral hearing but can seek answers over the process from the Premier League board in writing. Rosen is expected to have appointed a chair for the panel within two days of the initial board decision, with an outcome expected no more than seven days later.
According to the Premier League handbook, the panel can confirm the original decision was reasonable or “remit the matter back to the board, with written reasons as to why it does not consider the board’s decision to be reasonable in all of the circumstances, based on the material available to the board at the relevant time”.
The Everton takeover bid is likely to be the second time such a panel is called into action, with the one that assessed Ratcliffe’s move having been the first. The Premier League only publicly confirmed Ratcliffe’s approach had been approved by its board after that panel had backed its original decision.
Representatives of 777 and the Premier League met recently for face-to-face talks that offered the chance for a breakthrough in the impasse. A decision is now widely believed to be close as a result.
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