A Eagle Football Holdings, a group controlled by John Textor, plans to go public on the US stock exchange later this year. The process would take place through a special purpose acquisition company (SPAC) in an unprecedented initiative in the world of football. The target would be a valuation of US$ 1.2 billion (R$ 6.2 billion).
The information was published last week by the Financial Times newspaper, but it is not complete news. Textor itself had already revealed, in March 2022, plans to take Eagle Football public. But, after all, what does this mean and what would be the impacts of this initiative for the Botafogo?
What does it mean to go public on the stock exchange?
Going public on the stock exchange represents the first time that a company will receive new partners by offering shares to the market. For this, it must go through the IPO (acronym for “initial public offering”, or “initial public offering” in Portuguese). The company then becomes a publicly traded company with shares traded on the Stock Exchange.
What is SPAC?
Special Purpose Acquisition Companies – often referred to as “blank check companies” – are publicly traded vehicles that raise money with the intention of buying a private company or merging with another during a certain period. SPACs are created to gather financial resources in an agile and less bureaucratic way, cutting the necessary requirements for an IPO.
Eagle Football’s plans include a possible merger between the group and Iconic Sports Acquisition Corp, a SPAC created by Iconic Sports Management. This company itself made a $75 million investment in Eagle Football to help finance the purchase of Lyon in 2022.
What is Eagle Football Holdings?
Eagle Football Holdings is the company controlled by John Textor and owns a number of clubs around the planet. In addition to 90% of SAF Botafogo, the group is also the majority shareholder of Lyon (FRA) and RWD Molenbeek (BEL). Eagle also has a 40% stake in Premier League side Crystal Palace. All shares would be listed on the Stock Exchange if John Textor’s negotiations were successful.
What would be the benefits for clubs?
The IPO on the Stock Exchange would have a direct benefit for the clubs belonging to Eagle Football Holdings: an increase in fundraising. The sale of shares may represent greater investment in clubs, whether in structure or reinforcements.
– People are impressed with the amount of money being allocated to help Botafogo. But this is the smallest percentage of the money available for this team, if we access the capital market, and if we can really bring this capital to new stadiums and gym facilities, for example. I believe it is a new opportunity for football – said Textor, in an interview with CNN Brasil, in March 2022.
