777 Partners' London basketball team faces potential closure

777 Partners’ London basketball team faces potential closure | Insurance Business New Zealand

Reinsurance

777 Partners’ London basketball team faces potential closure

Re/insurance holding group continues to face legal action from creditors

Reinsurance

By
Kenneth Araullo

A London basketball team owned by investment firm 777 Partners faces potential closure due to a legal action supported by multiple creditors.

The London Lions, a basketball club purchased by 777 in 2020, is confronting a winding-up petition from one of its clothing suppliers, according to a court hearing on Wednesday.

AB Realisations 2023 Limited, which is owed around £120,000 ($156,000), was joined by several other creditors claiming unpaid debts, including firms that provide medical and broadcasting services to the club.

According to a Bloomberg report, the London Lions is among several sports investments made by 777 Partners in recent years. It is also worth noting that the firm spent months trying to acquire Premier League football club Everton, but the deal fell through earlier this year.

In the latest case, Judge Sebastian Prentis granted a seven-day adjournment to allow the London Lions petition to be heard next week, providing temporary relief for the club. Winding-up petitions are requests from creditors to close a business and sell its assets to pay off debts, often used as a last resort.

One of the creditors informed the court that a potential sale of the London Lions was under discussion. The club representative also declined to comment on this matter.

Insurance company Advantage Capital Holdings LLC has engaged bankers at Moelis & Co. to review 777’s portfolio of football teams, which includes Vasco da Gama in Brazil, Italy’s Genoa Cricket and Football Club, Hertha BSC in Germany, and Paris-based Red Star FC. Prior to this, 777 hired restructuring advisers at B Riley Advisory to assist with a turnaround.

In addition to owning the London Lions, 777 held a 45% stake in the company licensed to operate the British Basketball League. That license was terminated by the British Basketball Federation last month and awarded to a new consortium on Wednesday.

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