BBL engages with new investors amidst 777 controversy
The British Basketball League (BBL) are in ‘advanced discussions with potential new investors’ following the ongoing 777 Partners controversy, reports The Times.
777 – who own a 45% stake in the league, along with the London Lions, while also helping to fund the league-owned Manchester Giants and Plymouth City Patriots – have come under increased scrutiny in recent months, following alleged unscrupulous business practices reported by Josimar, before 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”.
777’s attempted takeover of Everton football club has put their business under the spotlight, while they have recently called in turnaround and crisis management experts following the lawsuit. Wander and Pasko have since resigned from their roles.
BBL Chairman Sir Rodney Walker told The Times last week:
“The announcement that 777 is bringing in restructuring experts was news to us and we have written to them to try to establish what the effect of this will be on the outstanding loan.
“We have decided, with 777’s support, to look for new investment and are in advanced discussions with potential new investors.”
The Times added the league is owed hundreds of thousands of pounds in a loan from the company.
The Miami-based private equity firm has missed payments to the league, putting it at ‘risk of administration’ according to reports, meanwhile they have pulled the London Lions women’s team from Europe next season, along with informing parents earlier this month they would be withdrawing London Lions junior teams and the academy from next season.
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