777 Partners’ London Lions Basketball Team Faces Closure by Creditors

(Bloomberg) — A London basketball team owned by beleaguered investment firm 777 Partners risks closure in a legal action supported by a slew of creditors.

The London Lions, a basketball club that 777 purchased in 2020, is facing a winding-up petition from one of its clothing suppliers, a court heard on Wednesday. AB Realisations 2023 Limited, owed around £120,000 ($156,000), was joined in court by several other creditors who say they haven’t been paid, including representatives of firms that supply the club with medical and broadcasting services.

The London Lions is one of a number of sports investments that 777 has made in recent years. The firm spent months attempting to buy Premier League football club Everton, but the deal eventually collapsed earlier this year. 777 is now facing accusations of fraud and legal action from Leadenhall Capital Partners.

In the latest case, Judge Sebastian Prentis granted a seven-day adjournment so that the London Lions petition could be heard next week, granting some breathing space for the club. Winding-up petitions are effectively requests from creditors to have a business closed and assets sold to pay debts. They’re often the last resort for those owed money.

A representative for the London Lions declined to comment when contacted by Bloomberg News. 777 didn’t respond to a request for comment.

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

Portfolio Review

Insurance company Advantage Capital Holdings LLC has hired 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. Before that, 777 hired restructuring advisers at B Riley Advisory to help the firm effect a turnaround.

London Lions have enjoyed a great deal of success on the court, with one of its teams crowned European champions earlier this year. Off the court there have been difficulties, however, with many of the players that helped them pull off that win set to leave, the BBC reported. 

As well as buying London Lions, 777 owned 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 was awarded to a new consortium on Wednesday. 

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