Since the end of last year, the American John Textor has articulated and prepared himself to receive partners and investors in the company that controls Botafogo. Among them, it has already attracted part owner of the Milwaukee Bucks NBA team James Dinan. This movement occurs amid the need for cash flow in the company.
The blog consulted documents from the companies involved in the deal to understand the investment operation in the conglomerate of clubs idealized by Textor. Currently, Eagle Football Holding, the American’s company, has Botafogo, a slice of Crystal Palace, RWD Molembeek and Lyon.
It was in the purchase of Lyon that Textor began to expand its society in order to obtain resources. There was money raised from funds and from sports marketing companies.
The North American company Iconic Sports Acquisition was responsible for an investment of US$ 75 million. Among its partners is James Dinan, a partner of the Milwaukee Bucks, who joined the Board of Directors of the Textor company.
An Iconic Acquisition document reveals the possibility of a merger of the company with Eagle Holding:
“In connection with this investment, Iconic Eagle has entered into agreements with various parties, including Eagle Football. These agreements allow the company to enter into a business combination with Eagle Football for a valuation of approximately $1.2 billion.” , says the document filed with the SEC, the regulatory body for publicly traded companies in the US.
Other executives included on Eagle Holding’s Board are from Ares Sports Media, which has financed football operations at clubs such as Atlético de Madrid and Inter Miami.
Documents from London-based Eagle Holding indicate that Textor still owns 75% of the company’s shares. This picture may change if there is indeed a merger.
The company has already been formally prepared for the arrival of partners with rules for the purchase and resale of shares. There is a regulation, for example, that prohibits purchase and sale operations that interfere with the possibilities for the teams in the group, Botafogo, Crystal Palace and Lyon, to compete in UEFA and CONMEBOL competitions or in national championships.
This is because in Europe and Brazil there is a ban on an owner having a majority stake in more than one football team.
Textor, meanwhile, has been struggling with cash flow issues at its clubs. In Botafogo, he admitted the loss of the first year of operation (R$ 248 million) and, at the moment, payments to creditors in court are suspended. To interlocutors, the businessman has said that he will insure expenses beyond the mandatory contributions by contract. The American left Libra and must sell his rights separately to raise funds.
In France, L’Equipe newspaper reported that he would have to get an extra €60m from Lyon’s budget to meet Ligue 1’s Financial Fair Play rules.
Therefore, Textor’s movements in search of partners for his group of clubs make sense. In principle, there is no effect on the actual management control of Botafogo. The blog sent questions to Textor about opening up Eagle Holdings for investment, but did not receive responses.
2023-06-28 07:00:00
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