777 Partners: Americanization of Football – Part 1

Founded in 2015 by Steven Pasko and Josh Wander, 777 Partners, based in Miami, USA, is an economic group investing in sports and aviation.

Follow along with us the work of American investors up to this point and where they can go.

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777 Partners Overview

777 Partners is yet another mark of the Americanization of football. Finally, in the 21st century, American investors realized that the most popular sport on the planet could be a good business.

Thus, not only 777 Partners, but also John Textor, Todd Boehly, and many others decided to embark on this journey into the world of football.

With that, the magnates of Miami already have equity stakes in six teams around the world, namely Vasco da Gama (Brazil), Genoa (Italy), Everton (England), Red Star (France), Hertha Berlin (Germany), and Standard Liège.

Let’s see the performance of each of them.

Image: 777 Partners Reproduction

Genoa

Known for being the oldest club in Italy, Genoa exudes tradition.

In addition to its historic founding dating back to 1893, the northern Italian team boasts nine Serie A titles in its curriculum, being one of the four biggest winners of the tournament, behind only Juventus, Inter, and Milan.

However, it is undeniable that almost 100 years have passed since Genoa was one of the elite clubs in Italy.

Thus, in September 2021, 777 Partners decided to enter the scene, acquiring 99.9% of the club’s shares for $175 million.

The first season was a big failure. Genoa finished second to last in Serie A in the 2021/22 season and was relegated after 15 years in the top flight.

However, they finished second in the following season and returned to Serie A.

In the current season, they are in 12th place with a mid-table reasonable football.

However, a bizarre fact must be exposed. In 2023, Genoa lost a point in the Serie B standings for not paying the income tax from the previous fiscal year.

Simply bizarre.

Further ahead, you will observe a legal department that is at least incompetent, given that this is just one of the many problems faced by teams guided by 777 Partners.

Image: Genoa Reproduction

Everton

A traditional English club, Everton has been going through tough times for some time now. Being on the brink of relegation in the last two seasons, this one is no different.

According to the press, 777 Partners would have started the purchase of about 94% of the club’s shares, which were owned by Farhad Moshiri. It is speculated that the total value of the transaction revolves around £550 million.

However, there is no explicit confirmation of the completion of the transaction, as apparently, according to the British media, the fund failed to raise enough resources for the acquisition.

Shortly after the arrival of 777 Partners, a bombshell. Everton lost 10 points in the Premier League table for not adhering to profitability and sustainability guidelines related to losses.

One must question. Wasn’t this verified at the time of the purchase of the shares by 777 Partners?

However, the damage was reduced with the applied resource and the return of four of the ten points deducted, which is saving the entity from relegation, as there is currently a five-point difference from Luton Town, the first team within the zone.

What will Everton’s prospects be in the following seasons? Between having or not having the value to finalize the purchase of the club, the institution remains lost on and off the field. A club like this cannot content itself with constantly escaping the Championship.

Image: Football 360 Reproduction

Vasco da Gama

One of the most traditional clubs in Brazilian football, Vasco da Gama and its fans have suffered greatly since 2008, when the team was relegated to Serie B for the first time.

With a brief exception period between 2011 and 2012, when the team won the Copa do Brasil and reached the quarterfinals of the Libertadores, Vasco’s fans still dream of better days, which have not yet come.

Thus, with the arrival of 777 Partners in January 2022, fans immediately wanted the purchase to be made, as nothing much worse could happen.

In 2021, Vasco achieved a terrible 10th place in the Brasileirão Serie B classification. Therefore, in the following season, 777 Partners achieved its first goal, which was the return to the elite of national football.

In a disputed 2022 Serie B, Vasco finished in 4th place (last spot), along with the other three big clubs, Cruzeiro, Grêmio, and Bahia.

Despite this, Vasco’s days of suffering are not over. A wrong planning at the beginning of the year almost resulted in another relegation.

São Januário’s team avoided returning to Serie B with a goal late in the last match. This is because there was a recalculation of the route and the experienced coach Ramon Diaz was hired. Otherwise, the team would certainly have suffered another descent. This, being one of the teams that spent the most on transfers in 2023.

Will Vasco da Gama finally regain its glory days this year?

Image: Vasco da Gama Reproduction

Standard de Liège

One of the most traditional teams in Belgium, Standard Liège is another example of teams that have not felt any difference with the purchase by 777 Partners.

In March 2022, the Miami fund acquired 99.7% of the shares of the institution for an eventual €55 million.

In fact, the club, which has won the Belgian championship ten times and the Belgian Cup eight times, has not been in a good moment for a long time.

The last national league was won in the 2008/09 season and the domestic cup in the 2017/18 season.

However, since the arrival of the Americans, the situation has not changed at all.

Currently, the team is in 10th place in a league with 16 teams.

But off-field failures continue to be a hallmark of the Americans’ work.

According to portals, 777 Partners’ promise to settle Standard Liège’s debts is not being fulfilled, and the shortfall amounts to €24 million, even though this was a promise to be fulfilled upon the purchase of the shares.

And there are more cases. Already under the baton of 777, the Belgian club was banned from transfers by the national federation due to the non-presentation of proof of payment for transfers of some players, as well as debts with athletes, employees, and the government.

Where will the team end up?

Image: 777 Partners

Hertha Berlim

Hertha Berlin had 64.7% of its shares bought by the 777 Partners group in March 2023.

It’s another traditional team in the hands of Americans.

Hertha Berlin may be considered a team of tradition, but it is not one of the most successful in Germany, far from it.

Moreover, it has been going through tough times for some time.

Despite the arrival of 777 Partners, as always, with money and promises, the fans are filled with hope, which is rarely (or never) fulfilled.

Even with little to do at that point in the season, Hertha Berlin fell to Bundesliga 2 exactly two months after the arrival of 777 Partners, holding the bottom of the competition.

When it was thought that things might change in the 2023/24 season, nothing happened. Only the 9th position and far from qualifying to return to the elite of German football.

Image: Reproduction Hertha Berlim

Melbourne Victory

The second biggest national champion in Australia received an initial investment of $50 million from 777 Partners starting in October 2022.

The total values for 70% of the club’s shares were not disclosed.

Despite being created in 2004 and therefore a fairly young club, Victory was very successful in Australia from the mid-2000s to 2018. Since then, it has been going through a title drought.

In fact, in the first year of 777 Partners, it finished second to last in the standings, which would have resulted in relegation in most leagues around the world, but this did not happen as there is no relegation and promotion system in the Australian league. Let’s be fair and point out that this was not the team’s worst ranking in recent years, as in 2020/21 they managed to be at the bottom.

In the current season, Melbourne Victory is in fourth place, nine points behind Wellington Phoenix, the leader of the competition.

Image: Melbourne Victory Reproduction

Sevilla

Owner of minority shares of this great Spanish club, 777 Partners was at war with the institution’s leadership.

With percentages ranging from 5 to 12%, according to the Spanish press, the American fund got what it wanted.

After ten years in office, José Castro was replaced by Del Nido Carrasco, son of Del Nido Benavente, an important figure in the Andalusian club.

Despite the recent conquest of another Europa League, Sevilla is not experiencing its best moment. Last season, only 12th place in La Liga.

In the current calendar, 14th place on the table and poor football.

It is speculated that the club is experiencing an internal crisis, with the Americans’ interest in obtaining greater control of the club and being able to participate in its management as a possible focus.

Therefore, José Castro was replaced from President to Vice-President by the board of directors, as 777 Partners wanted.

We know that ego wars and control by political groups are not new in football. But to what extent can investors who claim to be professionals interfere in the day-to-day running of the club?

It’s worth questioning.

Image: Archive EFE

Legal problems and investigations

As if all that has been discussed here were not enough, 777 Partners still faces investigations in the US jurisdiction.

According to the news portal, Semafor, a team from the United States Department of Justice is investigating whether 777 violated money laundering laws and other violations.

And it doesn’t stop there. The portal Josimar also brought controversial revelations made by a possible former employee of the company (who preferred not to be identified), who claimed the following:

“All their businesses are losing money. Sports, aviation. And who will take this loss? The joint venture partners. The company says it finances itself, but they can’t have as much money as they say, it’s simply not possible. They don’t need much money, what they do is move the money from one side to the other, it’s always the same money.

Elsewhere, 777’s involvement followed mainly the same three-act script. First act, hope. Secondly, reality check. Third, disillusionment. The best illustration of this arc is probably what is happening at Vasco da Gama – in an excerpt from the article.”

All points need to be properly investigated for conclusions to be drawn, with the competent authorities responsible for imposing any kind of responsibility.

However, let’s make an imaginative exercise based on the information brought so far.

So far, except for the Europa League with Sevilla, no club under the management of 777 Partners has won any title or presented a standout campaign, which could generate a good return in prize money.

From an economic point of view, a surplus can be seen in transactions in the vast majority of their clubs, but without significant results, which could lead to a large deficit since the group makes multimillion-dollar investments for the acquisition of shares, debt settlement, and other issues.

So what are 777 Partners’ expectations in the sports field? And regarding the economic aspect?

The fact is that, in these eight years of existence, the American group has written a negative story in football.

We know that immediacy cannot be preached, and that work must happen gradually and with future visions.

However, we do not see this perspective in the clubs managed by 777 Partners. As if that weren’t enough, they demonstrate great amateurism when it comes to football and everything surrounding it.

The impression is that two American billionaires woke up one day with the dream of investing in this area. As excess capital is a reality for them, it seems only that this is another source of resource allocation.

This, without entering into the merit of the investigations, since, if confirmed, they can have an even worse outcome than incompetence.

Do they believe that 777 Partners’ teams will be able to turn things around?

Written by Vitor F L Miller.