John Textor is making progress in attempts to sell his 45% stake in Crystal Palace.
Raine Group – who helped Sir Jim Ratcliffe secure a 27.7% stake in Manchester United and also managed the sale of Chelsea to Todd Boehly – are assisting the American in finding a buyer.
Textor wanted to buy Everton – but needed to offload his involvement at Selhurst Park due to a conflict of interests – a factor which ultimately led him to miss out on the Toffees to Dan Friedkin.
Nevertheless, the man from Missouri is still looking to sell his 45% stake in Crystal Palace, and a significant update emerged on Tuesday as Eagle Football Group released a statement, revealing that a buyer is expected to be found by early November.
Within the statement, it reads: “The Raine Group is leading the sale process for Eagle Football’s interest in Crystal Palace Football Club, through which we expect to identify a finalist and buyer in early November 2024.”
Now, We Are Palace have spoken to Adam Williams – Head of Football Finance and Governance Content for GRV Media – to get the lowdown on the situation involving John Textor.
£225m deal possible for John Textor at Crystal Palace
Williams informs We Are Palace: “Raine Group have stellar relations with both (Todd Boehly and the Glazer family) as they managed the sales of Chelsea to a group led by Boehly and Clearlake Capital, and 27.7% of Man United to Sir Jim Ratcliffe earlier this year.
“Incidentally, it looks as though Textor will use some of the funds from the sale of his Palace stake to repay a $500m (£385m) loan from Ares, which has been taken out with an eye-watering interest rate of 17%. The structure of that loan also sees the interest rate climb every year.
“Textor is trying to tidy up Eagle Football’s balance sheet in time to list them on the New York Stock Exchange by the end of 2024. That’s the reason the company is late filing its confirmation statement and its accounts with Companies House too, they say. They are changing their accounting standards to comply with US law.”
Another football finance expert in Kieran Maguire believes Textor could secure £225m for his 45% stake in Crystal Palace.
The above information represents the bulk of what Textor is currently working on after missing out on a deal to acquire Everton, and Williams also provided some information on how Crystal Palace are viewed by potential investors.
The finance expert added: “Going back to Raine Group and their search for investment (in Crystal Palace) I think they will be targeting private equity market. Those are the type of institutions that will likely be more comfortable with not being a majority partner.
Colin Neville – a partner of Raine Group – said recently that some of the brands that he is working with are attracting interest from up to 50 PE (private equity) firms.”
Roc Nation President Michael Yormark makes exciting comment
Williams continued: “Meanwhile, Michael Yormark – who is president of Roc Nation, the agency founded by Jay Z that represents the likes of Kevin De Bruyne and Vinicius Junior – has said he sees Palace as the club who could have massive potential as a lifestyle brand.
Speaking on YouTube to Business of Sport, Yormark said when asked who could soon become a “culture” club: “I like Crystal Palace. I think it has a unique opportunity, it’s an underdog. I’m not gonna pick the obvious, the Arsenals, the Liverpools, Manchester United because they’re big brands already. I think, based on their location, I think it would be a unique opportunity.”
In regards to this interesting comment, Williams said: “That might sound trivial to supporters – and understandably so – but it is the kind of thing investors are looking for in a capital appreciation project. Basically, buy low, sell high.
“I also think that the way that Steve Parish runs the club fits with private equity’s usual ethos, which is to streamline costs, focus on commercial growth, and grow the club’s value as an asset.”
Hopefully, that has provided a clear insight into the latest on Textor at Crystal Palace – by the sounds of it, Parish, Josh Harris and David Blitzer could soon have a new face alongside them in the boardroom.
