Everton have been jilted by 777 Partners who failed to show up with their long-awaited takeover bid , the deadline for which was earlier this morning.

We should not be surprised. 777 are the tip of a fast melting iceberg of American finance companies who have a common interest in Bermuda and the murky world of reinsurance.

The FT reports last week that AM Best, the American credit agency are fighting for the right to downgrade two American insurers , mainly due to the problematic valuations of 777 and in particular 777 Re – it’s Bermudan subsidiary.

In truth, this looks a lucky escape for Everton, the Toffees are now expected to assess interest from other parties, before making a decision on how to progress.

Earlier in May , the FT reported

777 Partners has called in turnaround and crisis management experts, as the investment firm wrestles with accusations of fraud and the unravelling of the reinsurance financing that underpinned many of its acquisitions.

London asset manager Leadenhall Capital filed a lawsuit that alleged that 777 co-founders Josh Wander and Steven Pasko were

“operating a giant shell game at best, and an outright Ponzi scheme at worst”.

Quite a worry for American insurance , this is increasingly a worry for the burgeoning pension  bulk buy-out market in the UK, which reported a 30% increase in the use of Bermuda for “funded reinsurance deals”. It’s one thing paying to shift risk abroad, it’s another moving the assets. The assets of 777 partners have been described in the FT as “esoteric”, other words might be used privately.

There will now be some serious questions being asked at Genoa CFC in Italy, Standard Liège in Belgium, Red Star F.C. in France, CR Vasco da Gama in Brazil, and Hertha BSC in Germany. All are owned by 777.

The Sun’s analysis is that the withdrawal of the 777 bid, is gloomy

TOFF LUCK 

Everton confirm 777 Partners’ takeover has COLLAPSED leaving club on brink of going bust

They will now be forced into a huge firesale of their best stars to pay back creditors and face further points deduction

The Sun says that Owner Farhad Moshiri needs to find a new buyer or the club could go into administration but with the support of Professional Trustee Bobby Riddaway, there is hope!!

Bobby Riddaway