Melbourne Victory's A-League Men Pride Jersey from 22/23 season with Bonza sponsorship. Photo: Poletti/Round Ball Australia

Melbourne Victory minority shareholder, American investment company 777 Partners, has become insolvent according to investigative outlet Josimar, but how did the company enter this mess?

Two years ago in October, Victory confirmed that 777 Partners put pen to paper on a 19.9 per cent share in the football group – deemed one of the biggest sporting investment coups in Australian sporting history.

Although 777 Partners don’t fully own the club, it is a massive blow for a side banking on increased investment and capital to build for the future – still trying to recover from Covid deficits.

A Victory spokesman has today said the reports have no impact on the club as it stands.

“777 is still a 19.9 per cent shareholder of Melbourne Victory,” a club spokesman said.

“As a minority shareholder, the latest on 777 has had no effect on Melbourne Victory and its operations.”

Round Ball Australia takes you through the journey of 777’s partnership with Melbourne Victory.

October 4 2022: Bonza confirmed as front-of-shirt sponsor

Melbourne Victory announced a four-year sponsorship deal with Australian airline Bonza to become the club’s new front-of-shirt sponsor.

What made this deal a key factor was 777 Partners’ involvement with the airline – possessing full ownership.

October 5 2022: Official agreement announcement with 777 Partners

Victory landed a deal with 777 Partners as minority shareholders in what was described by then Victory chairman Anthony Di Pietro as “incredibly exciting” from a commercial and strategic perspective.

“In looking at the benefits of a strategic partnership for the club, it was key for Melbourne Victory that we aligned with the right partner who would help create new opportunities for growth and development as well as maintaining what makes Melbourne Victory special,” Di Pietro said. 

“The 777 Partners deal will strengthen our capital base and will allow the club to supercharge its growth trajectory as well as ensure its longevity in Australia and football while retaining the Melbourne Victory brand, fabric and history.

“Our vision is to lead, unite, connect and inspire Australians and we believe, now more than ever, that with the resources and strategic support that 777 Partners has to offer we will achieve just that.”

Having established themselves as one of the biggest clubs in Australian football with four domestic championships, the project was an intriguing one for 777 Partners.

The company’s founder and managing partner, Josh Wander, expressed his enthusiasm and optimism about working with the organisation.

“Football is poised for tremendous growth in Australia, and on this basis, it is strategically important for our group to be here. With [Melbourne Victory’s] success on the pitch and passionate, loyal fan base, [it is] the perfect club for us,” Wander said.

“With 777 Football Group, Melbourne Victory will now have access to world-class data and analytics professionals, advanced player development techniques and global commercial opportunities, such as the unique partnership with Bonza that benefits all involved.

“We are committed to doing all of this while respecting the history and traditions that Melbourne Victory fans hold so dear. We are very excited to be a part of this journey alongside Melbourne Victory.”

June 1 2023: Club chairman Di Pietro retires

Long-term servant of Melbourne Victory, Anthony Di Pietro, announced his decision to step away from the club hierarchy after 18 years as director and 13 years as chairman.

The well-known businessman was one of the main pillars in finding an agreement with 777 Partners eight months prior.

John Dovaston replaced Di Pietro, while a new look board incorporated Kerry Smith and former captain Carl Valeri to join 777 Partners’ chief executive Don Dransfield and managing director Caroline Carnegie.

September 18 2023: Victory managing director justifies the deal

In an interview with ESPN in September last year, Carnegie remained adamant that the club would be “strong enough to survive regardless” despite a recorded A$6.7 million loss for the 2021/22 financial year and commitment concerns involving 777 Partners.

“Melbourne Victory will always be Melbourne Victory. And there’s a reason that we partnered with [777 Partners],” she said. “It’s clear that additional equity is helpful in this gig, and that was part of it. But having somebody that had relationships with other clubs that could help us with commercial partnerships, fan engagement, new technology and pathways was a big part of it.”

Josimar, the reporting outlet, was consistently vocal about allegations concerning illegal activity and fraud within the walls of 777 Partners, despite the investment company denying the claims.

“I think [777 Partners] have made significant comments on what they thought of that and I’m not intimately involved in the [777 Partners] business,” Carnegie said in response to the Josimar article.

“I can only speak about the dealings that we’ve had with them and I think I’ve spoken about the positives from those.”

April 30 2024: Bonza falls under voluntary administration

Following regular reports of struggles in the Australian market in the weeks prior, the inevitable became a reality for Bonza as the low-cost Australian airline announced the company would be going under voluntary administration.

Two months beforehand, Bonza was granted eight weeks to find a new buyer after financial woes impacted the airline’s future.

777 Partners took a massive hit due to the collapse, with Bonza fully reliant on the American investment company for funding.

Victory acted quickly to compensate for their sponsorship loss, agreeing on a deal with life, health and wellbeing insurer AIA Australia for last season’s finals series.

June 2024: Dransfield quits from role

Dransfield, Chief executive of 777 Partners, stepped down from his role at the company.

However, he was still part of the Victory board as his position did not change.

October 7 2024: Bankruptcy of 777 Partners confirmed

Reports from Josimar and other sources concluded that 777 Partners had gone bankrupt after multiple sporting investments by the firm with either sole or majority stakes in Genoa (Italy), Hertha Berlin (Germany), Standard Liege (Belgium), Red Star (France) and Vasco da Gama (Brazil).

According to Josimar, 777 Partners is now in the hands of liquidators, B Riley.

Conclusion

In the end, will this prove to be an unmitigated disaster for Victory? The short answer is no.

The club’s current ownership remains diversified, but a potential 70 per cent majority stake was on the cards for 777 to trigger as agreed upon last year. This news may serve as a blessing in disguise.

It remains to be seen what will happen with 777’s 19.9 per cent stake in the club. Will talks with new investors become a top priority?

And then there are the supporters who will expect a full detailed statement in the coming days to provide much-needed clarity. When will the full picture be painted?

The silence in the first 36 hours suggests that 777’s collapse will be a slight bump in the road.

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