January 28 – Private equity investment firm Ares Management has moved to take control of Eagle Football Holdings from American businessman John Textor.
Brazilian newspaper O Globo reports that Ares, which provided Textor (pictured) with financing for the acquisition of Olympique Lyon and other clubs, activated a clause after Eagle Football failed to meet specific financial obligations. It would end Textor’s operational command over the holding group that spans clubs in France, Belgium and Brazil.
The shake-up will not immediately affect day to day operations at Botafogo. The Brazilian SAF (Sociedade Anônima do Futebol) structure will provide a level of legal insulation from the holding company’s immediate debt crises.
Eagle Football will remain the controlling shareholder of Botafogo, but the management of the SAF, headed by Textor, can only be altered by a decision of the SAF’s own board or by the end of the preliminary injunction issued by the Rio de Janeiro Court of Justice, which protects the board’s composition and governance structure. Ares will take control of Eagle Football as creditor, but the management of Botafogo will remain unchanged for the time being.
Textor told O Globo that he remains in control of Eagle Football and is working to bring new funds to Botafogo this week, with the aim of shielding SAF from the turmoil between Eagle Football and Ares.
In France, RMC reported that Textor sought to wrestle back control of Lyon, but that minority shareholder Michele Kang and Ares countered his actions.
Contact the writer of this story at moc.l1769608180labto1769608180ofdlr1769608180owedi1769608180sni@i1769608180tnuk.1769608180ardni1769608180mas1769608180
Source link
Add Comment