Concern around the state of Everton has now reached high-level political circles as one of the region’s most influential figures has sought reassurance over the club’s future.

Steve Rotheram, mayor of the Liverpool City Region and chair of a strategic Government advisory panel, has written to Blues chiefs as he adds his voice to calls for answers over the direction of the club.

His intervention comes with Everton appearing to rely on borrowed money as it attempts to reach what it hopes will be a new dawn, with prospective owners 777 Partners this month becoming the latest to pump funds into the club. That Farhad Moshiri’s failed project is relying on support from the group seeking to replace him, before it has even undergone official due diligence, is a damning indictment of the mess the billionaire is trying to escape. Much of it is of his own making.

The loan, of around £20m, is understood to have been intended to help Everton cover some club and stadium costs while 777’s takeover bid seeks approval from regulatory bodies including the Premier League. It means the Miami-based investment firm is the latest organisation to offer financial assistance to the club with its future clouded in uncertainty...

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The precise status of Everton’s finances is a subject of intense speculation and increasing concern as attention grows on a club that is central to the social and economic fabric of Merseyside. The instability that has engulfed the club has been fuelled by Moshiri’s long term search for investment - a hunt that started at least 18 months ago, which has seen exclusivity periods with two US groups end without a deal and, before the announcement of 777’s plan to buy his full 94.1% shareholding, repeated public claims Everton is not for sale. The ECHO understands that even in the weeks before the 777 deal was drafted, Moshiri was seeking alternative sources of financing and investment despite the group having been on his radar for around 12 months. What is of little doubt is that one of football’s most storied institutions is now in a financial position that should be unthinkable given the huge sums poured in during the initial Moshiri years.

That is despite a transfer window in which director of football Kevin Thelwell had to operate under serious financial constraints. This was particularly evident on deadline day when Sean Dyche lost one of his trusted first XI, Alex Iwobi, despite his stated preference to retain the midfielder. A reduction in the wage bill of around £40m and combined sales of a similar value, following 12 months in which the exits of Richarlison, Anthony Gordon and Moise Kean had already secured deals worth more than £120m, was still not enough to prevent Everton from seeking external funding throughout the summer and into autumn.

The transfer business of the summer came against the backdrop of the most recent set of published accounts, which were pitched by the club as positive because the loss had substantially diminished in comparison to previous years. Yet it still amounted to a deficit of £44.7m and this was achieved partially through the sale of Richarlison, which hampered the club’s competitiveness, and another injection of financial support from Moshiri who, however history comes to view him, cannot be accused of having not pumped funds into Everton during his seven years of involvement. His expenditure is thought to amount to around £750m.

Moshiri is now attempting to stage his exit against the backdrop of losses of more than £400m over five years and auditors highlighting a ‘material uncertainty’ over the club’s ability to meet its obligations in the event of relegation. For a club that secured its Premier League status in the final week of the season for two consecutive years, which has seen its summer policy dictated by tough finances, and which has a threadbare squad for Dyche to manage, it remains a worrying spectre ahead of what has the potential to be a third season fighting the drop - though this weekend’s impressive win at Brentford provided some relief on that front.

The developments of recent weeks - starting with those deadline day sales - point to lingering concerns. September has been a month in which despite players leaving for valuable transfer fees, Everton’s search for cash has extended beyond football clubs interested in its first team and academy players. First, on the back of the collapse of the MSP deal that was set to see sweeping board changes as part of what was expected to become a 25% stake in the club, Everton still sealed a loan towards the stadium costs, thought to be for around £100m.

Everton said at the time: "The club can confirm that it continues to make good progress on securing the complete stadium financing, and as part of this progress it has secured a loan to support the development costs for our new stadium. As the majority shareholder has stated previously, he will continue to explore discussions on new investment, provided it is right for the future development of the football club."

Days after the announcement of the proposed 777 takeover, came news of the firm’s loan to support Everton while scrutiny is applied to its plan to buy Moshiri’s shareholding. On September 15, the club’s Companies House records also showed a new charge registered by Rights and Media Funding, though a source close to the club said this did not represent a new loan and Rights and Media did not respond to the ECHO’s request for clarity.

Regardless, Everton have significant obligations with Rights and Media Funding. The most recent accounts noted a credit facility with the group of £150m. That has reportedly been extended to £200m. Before the most recent registration, it already had four outstanding charges against Everton listed on Companies House, some of which are secured against land and property. They include a host of properties listed on Goodison Road - predominantly homes acquired by the club and used by Everton in the Community.

Everton’s commitments to Rights and Media makes the lender one of the most influential outside voices to the club. It has been widely reported the group played a role in halting MSP’s investment bid over concerns about the impact it would have on its own arrangements. Sources close to both 777 and Everton have insisted it is not opposed to 777’s plans, though again, the organisation did not respond for comment when approached by the ECHO. The ECHO understands MSP does not have the option to thwart 777’s efforts through the terms of its agreement in relation to stadium financing.

The flurry of financial activity, from the new loans to the late business of the transfer window, offers little reassurance over the club’s financial predicament. Concern has included speculation the club may be close to administration, a claim dismissed by a club source. That position is supported by some external factors - while payments were deferred in the cases of summer signings Beto and Youssef Chermiti, selling clubs Udinese and Sporting would likely have undertaken some financial due diligence.

It is also questionable whether it would be in the interests of some organisations that could trigger administration to do so, while there is, to date, a lack of some potential red flags, such as issues with HMRC. Separately, since the publication of the most recent set of accounts, the huge cuts to the wage bill and the money brought in during recent transfer windows represent proactive efforts to reduce costs while commercial work has continued - examples of which include the club announcing a shirt sleeve sponsorship deal with KICK at the beginning of the season and this week revealing an expansion of its partnership with Christopher Ward that will see the British watch brand appear on the back of playing shirts for Everton’s women’s team.

Financial issues remain and the costs associated with the waterfront stadium development, which Everton said is on time and on budget, add to the financial pressures on the club - though in the announcement of the 777 takeover plans, Moshiri wrote that funding for the project had been secured. Details of that arrangement have not yet been released.

Football finance expert Kieran Maguire, author of The Price of Football, said: “Cash flow management is critical for Everton. Historically they have spent more money on a day-to-day basis than they have generated, although this has been addressed to an extent in 2023/24 through shifting some high wage earners off the payroll. In 2021/22 the club spent over £200m cash in terms of the Bramley-Moore Dock project, and it is the continued funding for this that gives the greatest concern. 777's recent loan is better than nothing but is likely to have been quickly swallowed up. Everton do not generate much cash from matchday operations compared to other big clubs in the Premier League, but still have significant outgoings on an operational level."

One organisation that will have a major say in Everton’s future is the Premier League. The club is due to face an independent tribunal next month over an allegation the club breached the league’s profit and sustainability rules. Everton deny any wrongdoing. Should the adjudication go against the club then the consequence is unknown but a financial penalty or a points deduction could be considered, both of which would add to the problems faced by the club. Should a penalty be deemed necessary, one issue for the authorities will be the desire to be seen to be taking effective action while also not wanting to risk exacerbating any issues at the club. The Premier League’s fit and proper persons test will also come under scrutiny as it assesses whether to sign off 777 Partners’ takeover attempt as part of a process that will include examination of the firm’s financial plans. Both Everton and 777 believe the application will be signed off.

When the plans were announced, Moshiri wrote: “I believe they are the best partners to take our great club forward.” Meanwhile, Josh Wander, founder and managing partner of 777, added: “We are truly humbled by the opportunity to become part of the Everton family as custodians of the club, and consider it a privilege to be able to build on its proud heritage and values. Our primary objective is to work with fans and stakeholders to develop the sporting and commercial infrastructure for the men’s and women’s teams that will deliver results for future generations of Everton supporters. As part of this, we are committed to partnering with the local community over the long-term, working on important projects such as the development of Bramley-Moore Dock as a world class stadium venue, allowing thousands more Evertonians to attend our home matches and contribute to the economic and cultural regeneration of Merseyside.”

The reputation of 777 has caused concern among supporters since the announcement of its plan to takeover Everton. It has stakes in seven other football clubs and its arrival and presence has been a subject of protest at some of those clubs. The fortunes of those clubs have been mixed - though the investment is relatively recent in each case. The uncertainty surrounding the group’s plans, which have not been detailed publicly, is just one of a number of factors that has led to political concern growing in relation to Everton.

Writing in today’s ECHO, Mr Rotheram detailed his desire for answers over a number of projects linked to the club as well as the plans of 777. The former Walton MP said: “Everton fans across the region and beyond are understandably concerned about what the future holds. Will the stadium be finished? Will the struggles on and off the pitch be resolved? Will the club deliver on the Goodison Legacy Project? Do 777 Partners have the best interests of the club at heart and the funds to deliver on them? I share many of those concerns and have written to the club to seek assurances and request a meeting to get answers to the questions on so many lips. Everton Football Club has been at the heart of the English game and the Liverpool City Region for well over 100 years. As mayor, I’m determined to do my bit to ensure that remains the case for the next 100 and beyond.”