The 777 Partners alleged fraud saga continues as another major sports team calls it quits over the investment firm’s issues.
Melbourne Victory, a professional soccer club in Australia’s A-League, and Advantage Capital Holdings, LLC’s wholly owned subsidiary, ACM Delegate LLC, together referred to as A-CAP, announced the completion of A-CAP’s divestiture of its interests in Melbourne Victory.
The transaction marks the conclusion of 777 Partners’ involvement with the club, with Melbourne Victory’s leadership indicating that the change will allow for adjustments to the shareholder structure and potential future investment.
John Dovaston (pictured above), chairman of Melbourne Victory, said the club appreciated the support received from A-CAP following the acquisition of 777 Partners’ interests.
In recent years, the Miami-based re/insurance group 777 Partners has encountered significant controversies and financial challenges, particularly concerning its investments in various sports teams and regulatory issues in Bermuda.
In September 2023, the company agreed to acquire a 94.1% stake in Everton FC. However, the deal faced delays and scrutiny due to financial instability and fraud allegations against the firm.
Subsequently, in May 2024, a lawsuit accused 777 Partners of a US$600 million fraud scheme, leading to further doubts about the takeover. Consequently, the acquisition attempt collapsed by June 2024.
Meanwhile, Standard Liège, which 777 acquired in March 2022, experienced fan protests in September 2023 over perceived lack of investment. Financial troubles led to an indefinite transfer ban in December 2023 due to delays in paying taxes, salaries, and transfer fees.
By May 2024, former owners sought legal action over alleged non-payment, resulting in a court ruling allowing the seizure of 777's assets in Belgium.
The group’s reinsurance subsidiary, 777 Re, also found itself in hot water over its involvement. In November 2023, the Bermuda Monetary Authority (BMA) appointed a “competent person” to investigate 777 Re due to serious issues, including significant exposure to assets connected to 777 Partners.
By June of the same year, the regulatory body canceled 777 Re's insurance license, citing material concerns about the company's operations and financial stability.
The cancellation has led to questions regarding the island nation’s reinsurance sector and its stability. In response, Bermuda's Premier, David Burt, defended the segment and emphasized the BMA's swift actions to enhance regulatory measures, aiming to strengthen transparency and oversight within the industry.
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