The “Eagle Football Holding” around US investor John Textor is on everyone’s lips after Olympique Lyon was ordered to be relegated. What is the multi-club construct all about?
On its website, Eagle Football Holding describes itself as “a family of global football clubs.”
And in the finest marketing speak, it goes on to say: “Our clubs collaborate to maximize competitive advantage through access to our global network of talent.”
Multi-club ownership as an ideal world and family idyll? The reality of the investor model, which is viewed critically, especially by football traditionalists, often looks different. Eagle Football Holding and its founder and chairman John Textor have now had to experience this.
Lyon investor Textor on the pillory with the fans
After the French financial supervisory authority condemned Olympique Lyon to relegation on Tuesday, the fans’ anger was directed at investor Textor. The American will “never be one of us,” wrote “Les Bad Gones,” the largest fan club of “OL.” He is more of a “Botafogo supporter.”
Textor’s holding company took over the former French serial champion in December 2022. “Today a new story begins,” he blared at the time. The deal is said to have totaled 800 million euros. OL became the figurehead of his holding company.
But the financial situation of the club is devastating. At the end of 2024, the debts are said to have amounted to 500 million euros.
Investor group threatens Textor with legal action
And Textor is threatened with further misfortune. As the Financial Times reported on Friday, an investor group around hedge fund billionaire Jamie Dinan is threatening the Lyon boss with legal action.
According to reports, Textor borrowed 75 million US dollars from the investor group as part of the Lyon takeover, which is now demanding the money back plus interest and is demanding 93 million US dollars (almost 80 million euros) from Textor.
The businessman is fighting back against this. “They simply have no claim to the contractual benefits they are now demanding,” Textor was quoted as saying in the report.
The Lyon boss keeps causing a stir. In the course of the dispute over the awarding of TV rights, Textor got into an argument with PSG boss Nasser Al-Khelaifi at the beginning of the year, who is said to have described him as a “cowboy.” Textor then appeared at the following league game against Paris with a corresponding hat.
US investor John Textor attracts a lot of criticism
“Hollywood’s Virtual Reality Guru” builds football empire
As the founder of the streaming platform FuboTV, Textor once made a name for himself in the USA. Forbes magazine once called him “Hollywood’s Virtual Reality Guru.”
His involvement in club football began in 2021 with his entry into English first division club Crystal Palace, with the US businessman taking over 40 percent of the shares at the time. The club “family” continued to grow steadily.
In the same year, Textor became the majority owner of Belgian club RWD Molenbeek. At the beginning of 2022, he bought 90 percent of the shares in current Club World Cup participant Botafogo. The holding company also maintains a youth academy in Florida.
In the meantime, the website still maintains the appearance of an intact family. Crystal Palace is still listed as a full member – but Textor filed for divorce at the beginning of the week.
Multi-club constructs are a widespread phenomenon
The 59-year-old sold his club shares to Woody Johnson, co-owner of the NFL franchise New York Jets. Multi-club ownership also exists across various sports.
Well-known empires here include the Fenway Sports Group, which includes English record champions FC Liverpool, the Boston Red Sox from the MLB and the NHL franchise Pittsburgh Penguins.
US billionaire Stan Kroenke maintains an even larger empire with FC Arsenal, the Los Angeles Rams (NFL), Denver Nuggets (NBA) and Colorado Avalanche (NHL).
The Red Bull empire and the City Group are also famous examples of multi-club constructs.
Dark sides of the club empires
But back to Textor: The sale of his shares in Crystal Palace revealed the dark sides of the club conglomerates. For weeks, his involvement in the clubs from Lyon and London had jeopardized the simultaneous participation of both clubs in the Europa League.
According to UEFA statutes, no natural or legal person may exercise control or influence over more than one club participating in the same UEFA club competition.
Textor’s withdrawal from Palace was actually supposed to save Lyon. But the shot backfired with the ordered relegation to the second division.
Although Lyon immediately announced an appeal against the decision – it may be successful, but there are no certainties. The family idyll at Eagle Football Holding is gone for the time being in any case.