The pressure on the US investment company 777 Partners, which has stakes in seven soccer clubs worldwide, including Hertha BSC, is growing. According to media reports from Brazil, the judiciary there has temporarily suspended the investment and shareholder agreement reached in the course of 777’s investment in Vasco da Gama. The situation in Liège is also coming to a head following a court ruling on Thursday.
On Wednesday evening, the 4th Commercial Court of the Court of Rio de Janeiro granted Vasco’s request and took control of SAF, the holding company of CR Vasco da Gama, out of the hands of 777 Partners, several Brazilian media reported unanimously on Thursday. The decision, signed by Judge Paulo Assed Estefan, temporarily suspends the effectiveness of the purchase agreement and the effectiveness of the investment and shareholders’ agreement concluded as part of the 777 entry, reports GE Globo.
Temporary transfer freeze in October
777 Partners, a strategic partner of Hertha BSC since March 2023, acquired a majority stake in the long-established Brazilian club in February 2022, taking a 70% stake for around 700 million Brazilian reals (equivalent to around 136 million US dollars). Vasco da Gama managed to return to the Brazilian top flight in 2022. According to the court, the five directors appointed by the 777 subsidiary Carioca LLC were removed from the seven-member board of directors of SAF, the holding company of CR Vasco da Gama, namely the two 777 founders Josh Wander and Steven Pasko, as well as Don Dransfield, Nicolas Maya and Andres Blazquez.
Ex-Vasco professional Pedrinho, who won the club’s presidential elections last November and took office in January, is said to have repeatedly clashed with the US investor in recent months, leading to the court application. In addition to temporarily suspending the validity of the contracts, the judge in charge also commissioned an independent company to prepare an economic and financial report and investigate the accounting transactions denounced by the club in the lawsuit. Globo meanwhile reported that 777 is currently up to date with its payments to Vasco. In October last year, however, the Rio club, which won the 1998 Copa Libertadores, was temporarily suspended for non-payment.
Escalation in Liège
Last week, the situation at Belgian 777 club Standard Liège escalated due to allegedly empty accounts and missing salary and payment receipts. Last Friday, Standard’s active fan scene forced the cancellation of the match against KVC Westerlo by blocking the team’s access to the Stade de Sclessin. Former Standard owner Bruno Venanzi and the shareholders of the stadium company are taking legal action to seize the 777 assets in Belgium due to outstanding payments – apparently with success. Belgian media reported on Thursday that the seizure of all 777 Partners’ assets in the country had been approved by the court of first instance, including the freezing of Standard’s accounts and shares as well as the shares in Immobilière Standard de Liège, which owns the stadium and is reportedly waiting for a payment installment of 3.8 million euros from 777 Partners due on April 15. 777 Partners can still appeal against the decision of the Liège court. The imminent resignation of Standard CEO Pierre Locht had already been announced on Wednesday. Meanwhile, the Liège professionals, including Hertha loanee Wilfried Kanga, are said to have received their April salaries.
The crisis at 777 Partners has been making headlines in various locations around the world for days. The main lender, Leadenhall Capital Partners, a London-based asset manager, had filed a fraud suit against 777 in a court in New York. Leadenhall accuses 777 of having secured loans of 350 million US dollars with assets that 777 allegedly did not own or had allegedly already pledged to other creditors. The Australian 777 airline Bonza filed for bankruptcy. The planned takeover of Premier League club Everton FC as part of the multi-club ownership strategy, for which 777 Partners is said to have already spent 200 million pounds, is in danger of failing. Now the latest developments in Brazil and Belgium are further exacerbating the overall situation
