In the midst of controversy surrounding its attempted acquisition of Everton FC, reinsurance giant 777 Partners finds itself facing legal trouble in New York. A lawsuit has been filed by Obra Capital accusing the firm of trying to shield assets from creditors by transferring valuable subsidiaries to co-founder Steve Pasko without fair compensation. The subsidiaries in question, Sutton Specialty Insurance Co. and Sutton National Insurance Co., are at the center of the legal battle.
This legal action comes shortly after 777 Partners’ purchase of a majority stake in Everton FC, sparking concerns about the stability of the company. Obra Capital is seeking to prevent the transfer of the insurance subsidiaries, arguing that all creditors’ interests need to be safeguarded. This lawsuit adds to a series of legal challenges faced by 777, including unpaid debts and previous legal disputes filed by Obra.
Questions about 777’s financial capabilities have prompted close scrutiny from Premier League officials, with concerns being raised about the conglomerate’s ability to finance its sports team acquisitions. The downgrade of 777 Re’s ratings further highlights these concerns about financial stability and risk management practices.
In addition to Everton, 777 Partners also holds majority stakes in various sports teams across Europe and Latin America. The lawsuit filed by Obra Capital underscores worries about the firm’s recent sports team investments and the implications for its overall business health.
The lawsuit emphasizes that 777’s rapid expansion into the sports industry has brought its questionable business practices into the spotlight, raising doubts about the source of its funding and the sustainability of its operations. This ongoing legal battle underscores the challenges facing 777 Partners in the wake of its high-profile acquisitions.
