Consortium Bid for Crystal Palace
A newly formed consortium of sports and entertainment figures, including NBA superstar Jimmy Butler, is rumored to be preparing a bid exceeding $200 million for Eagle Football’s 43% share in the Crystal Palace Football Club, according to sources familiar with the situation.
Leadership and Background
Industry insiders reveal that this investment group is spearheaded by Bejan Esmaili, a former executive at Morgan Stanley focused on sports, and Wajid Mir, a former attorney for Roc Nation. Last January, they previously had a brief exclusive negotiating period with John Textor, the largest stakeholder in Eagle Football and one of the main proprietors of Crystal Palace, but it was allowed to expire without a deal.
Despite involvement in the consortium, Dallas Mavericks head coach Jason Kidd opted to join the ownership team of Premier League rival Everton earlier this year. With Butler now stepping into the fold, sources indicate that the new consortium has support from American investors experienced in soccer ventures.
Current Ownership and Evaluation
The original ownership group was funded by Saudi investors Haider and Mansoor Syed, who decided to pursue other financing options after their exclusivity period ended. If the new consortium’s bid is approved, Crystal Palace could be valued at over $465 million (£343 million), following their recent triumph in the FA Cup, the oldest soccer cup competition in the world.
Comparative Investments
Recent high-profile investments in Premier League teams include Sir Jim Ratcliffe‘s acquisition of nearly 29% of Manchester United for $1.6 billion in December, and Todd Boehly-Clearlake Capital‘s much-publicized $3.02 billion takeover of Chelsea in May 2022. Meanwhile, Woody Johnson, owner of the New York Jets, is also reported to have made a bid for Eagle Football’s shares but has not yet met Textor’s valuation criteria.
Sportsbank and Future Prospects
Additionally, Sportsbank — a sports investment firm guided by ex-Everton director Keith Harris — was previously granted exclusivity to invest in Eagle but has since seen that option lapse and is not actively pursuing the deal, although it remains interested in potential investments pending Eagle’s initial public offering (IPO).
Eligibility for European Competitions
As for Crystal Palace’s participation in the upcoming Europa League, uncertainties loom regarding their eligibility due to Eagle Football’s ownership stakes in multiple clubs, including the French team Lyon, which may conflict with UEFA regulations concerning multi-club ownership. Textor reportedly sought for co-owners Josh Harris and David Blitzer to acquire Eagle’s stake, but their proposed terms did not meet his expectations.
This move is particularly significant for addressing concerns relating to Palace’s European involvement, as Textor is currently focused on selling Eagle Football’s stake, with the situation in Europe still under review. UEFA’s stipulations regarding club participation may present obstacles, especially considering Lyon’s qualification for the tournament, which likely puts them ahead in competing for a spot against Palace.
Future of Crystal Palace
While there is optimism among the Palace executives about their discussions with UEFA, clarity on their European competition status is expected to be communicated soon. If the American consortium’s offer is accepted, further steps toward a complete takeover of Crystal Palace could follow, positioning the group for greater control.
Textor initially acquired a minority stake in Palace in 2021, investing £87.5 million (approximately $114 million), and has attempted to increase his investment amidst strategic disagreements concerning the club’s future and its multi-club model, which involves controlling interests in various teams across different leagues. Now, his focus seems to have shifted decisively toward divesting from Palace, recognizing the challenges of maintaining a minority position in light of broader ambitions in football.
