Everton takeover: Who are MSP Capital and what is Jahm Najafi’s net worth after flipping 777 partners

Four weeks into the season, Everton have agreed to sell Farhad Moshiri’s majority stake to 777 Partners. Two points deductions, a relegation battle, Sean Dyche winning a Goodison Park Merseyside derby and seven Dominic Calvert-Lewin goals later, it’s still not over.

There have been updates, progress, roadblocks, issues, lots of public appearances from key members involved, and promises of completion over the eight-and-a-bit months, but no final resolution. Last week, things took a turn for the worse when potential investors were accused of running a multi-million pound fraud scheme.

For many it was the last straw as the wait around Everton continues amid background noise. Almost a full league season since they released a statement on their website saying: “Closing of the transaction is expected to occur in the fourth quarter of 2023”, 777 Partners is still seeking Premier League approval through owners and directors test. .

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It has since emerged that MSP Capital, which worked with the club during the process of building the new Bramley-Moore Stadium, could be back in the running.

The Liverpool Echo wrote on Thursday that the group, led by Jahm Najafi, Jeff Moorad and Peter Taylor, could be considering another play for control of the club. But who are they and why are they involved?

MSP Capital is a self-proclaimed “Forging the Future of Sports Investing” group. They describe the company as “investing in sports teams, leagues and businesses in the sports ecosystem that pursue ambitious and challenging tasks.” The website adds: “We focus on opportunities where our deep expertise and network of elite executives add value.

“Our principals have over 65 years of experience building companies, creating partnerships and evolving operations in the global sports industry. The strength of our network and experience is unmatched, with our partners generating over $2 billion in value over 20 years.

“At MSP Sports Capital, we use our past success and a hands-on approach to uncover the most unique and valuable opportunities.” This has been seen most visibly in the football world at FC Augsburg (German top division), AD Alorcon (Spanish second division), GD Estoril (Portuguese top division) and SK Beveren (Belgian top division).

They are also involved with McLaren Racing, while the chairman, Najafi, has roles with American NBA franchise Phoenix Suns. He founded Social Venture Partners Arizona, but MSP as a whole is based in New York. Najafi alone is reported to be worth over £1bn.

As for Moorad, he is a former sports agent who previously worked representing MLB players. He sold his agency company with Leigh Steinberg for over £100m in 1999 and was named one of the 100 most powerful people in sport eight times by The Sporting News.

He was also previously involved as CEO of the Arizona Diamondbacks and as an investor in the San Diego Padres. He formed MSP in 2019 with Najafi, Arne Rees and Steve Wasserman.

How they got involved with Everton is an entirely different matter, though. The group made a bid for a 25% stake last year after lending the club £158m to help finance the construction costs of the new stadium.

The repayment of that money by the 777 partners, who foot the bill and pay for the day-to-day running of the club since the original deal with Moshiri, was one of four key demands placed on Josh Wander and Co in September. On April 15, that money was due to be repaid, but an extension was reluctantly agreed, although it is said to be for “weeks, not months”.

Recent events have made an already complex situation even more so, however. As Business of Football writer Dave Powell explains: “The construction of the new stadium had two security arrangements. The first was through a fixed charge against assets owned by Everton Stadium Development Company Limited, the parent company of Everton Stadium, with the other being the option to acquire a controlling stake of just over 50% in Blue Heaven Holdings, the company whereby Moshiri holds a 94.1% stake in Everton.

“If this option were to be exercised in the event of a loan default, then it would cede majority control to MSP should it wish to exercise it.”

In simple terms, there is a chance that MSP Capital will have a chance to take over the club. The Liverpool Echo understands this is being considered by the group, although full ownership is considered unlikely.

Due to the stadium loan being secured against Moshiri’s Blue Heaven Holdings Limited – the company that owns Everton – MSP would be entitled to a controlling interest if the loans were not repaid.

Last year, the company entered into an exclusive with Moshiri to buy the Toffees outright, planning to have convertible debt for their stake, but this fell through. This is because Rights and Media Funding Limited have protection against possible defaults and they were not willing to give that up.

MSP has pledged another large sum to Everton Stadium Development Company – a subsidiary set up by Moshiri in 2017. It is now in discussions over whether a takeover would be viable.