Melbourne Victory and financial services company Advantage Capital Holdings (A-Cap) have announced the divestment of dissolved sports-focused investment fund 777 Partners’ interest in the Australian soccer club.
777 Partners purchased a minority 19.9% stake in the A-League team in October 2022, however, the Miami-based group's investment spree in clubs around the world soon gave way to crises and accusations of fraud before it collapsed last year, with its creditors A-Cap taking control of its soccer portfolio.
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Melbourne Victory stated that the transaction “marks a pivotal moment in the club’s history, seeing the exit of 777 Partners’ involvement with the club, and setting the stage for future growth and success for Victory, both on and off the field.”
John Dovaston, the club’s chairman, said: “We are grateful for the support we have had from A-Cap since taking control of 777’s interests in the club and we are excited about the next chapter.
“This transaction will help the club stabilize its shareholder base and clear the path for future investment that will in turn strengthen Melbourne Victory moving forward.”
A-Cap portfolio manager, David Shaw, added: “It is with great confidence and optimism that we pass the torch onward, knowing that the club is in capable and visionary hands. We are excited to see how this new chapter unfolds and are confident that Melbourne Victory will continue to thrive and achieve new heights.
“We wish the club the best and are grateful that A-Cap could help facilitate positioning the club to capture the bright future ahead of them, while simultaneously delivering a valuable outcome for our policyholders.”
Victory's agreement with 777 included provisos it could secure up to 70% of the club in exchange for investments totaling up to A$30 million ($18.7 million) and that if it opted to depart, it would be refunded any investment made beyond its initial stake at a compounding interest of 10%.
But while the firm’s collapse prevented it from exercising this option and Victory quickly replaced 777-owned Bonza Airlines as a front-of-shirt sponsor following the budget carrier's collapse, A-Cap retained a minority share through its 19.9% stake.
777 ultimately collapsed due to legal issues in the US. In May 2024, court proceedings were brought against the group in the country after a pair of investment funds claimed 777 and its managing partner Josh Wander owed them millions of dollars in damages after 777 pledged over $350 million in assets they allegedly knew they did not have or did not own as collateral for a loan it received.
The company’s soccer clubs in Brazil (Vasco da Gama) and Belgium (Standard Liege) were also seized by their respective national governments.
These problems also derailed 777’s attempt to secure ownership of English Premier League side Everton.
777 also owned Italian side Genoa, German second-tier strugglers Hertha Berlin, and second-tier French side Red Star, and had an investment in Spain’s Sevilla.
Outside of soccer, 777 owned the London Lions men’s and women’s basketball teams, and 45% of the now-defunct British Basketball League. The competition had its license terminated for financial reasons in June 2024, largely due to issues surrounding 777’s investment.
