Troubled Times for 777 Partners: Legal Turmoil and Soccer Struggles

Miami-based investment group 777 Partners is facing mounting problems in both the business and sporting world, with a grounded airline in Australia, a lawsuit in a New York federal court, and angry soccer fans in England resisting a takeover of Premier League club Everton.

777 Partners owns soccer clubs in Germany, Italy, Belgium, and Brazil but has failed to get approval for its bid to buy storied English club Everton. The Everton FC Shareholders’ Association has called on the club’s board to recognize that 777 Partners are not fit-and-proper prospective owners.

Financial administrators of the collapsed Australian airline Bonza, owned by 777, confirmed that all flights are canceled for one more week. A lawsuit was filed against 777 owners Josh Wander and Steven Pasko in a New York federal court, alleging fraud in connection to a $600 million loan.

The suit claims that about $350 million of collateral for the loans was not controlled by 777 or was already used as security with other lenders, in a practice known as “double-pledging.” The suit alleges that the owners were “operating a giant shell game at best, and an outright Ponzi scheme at worst.”

777 Partners moved heavily into soccer in 2021, buying up distressed clubs recovering from the impact of the COVID-19 pandemic. However, the ventures have faced challenges, with Standard Liege fans protesting against delayed player wages, Hertha Berlin facing relegation from the Bundesliga, and Genoa dealing with tax issues.

In Brazil, 777 took over top-tier club Vasco da Gama’s soccer department in a business operation known as SAF, but the club has struggled financially and accused 777 of delaying payments and causing problems for the squad.

Overall, 777 Partners is facing backlash and legal challenges in multiple countries, raising concerns about the future of its investments in the sporting world.