(Bloomberg) -- John Textor, one of the most active investors in football clubs, is discussing the potential sale of a stake in his Eagle Football Holdings Ltd. investment vehicle to Sportsbank, people familiar with the matter said.
Sportsbank, an investment firm focused on sports, had initially been interested in buying Eagle’s roughly 45% stake in English Premier League team Crystal Palace FC, according to the people. After weeks of talks, it’s now negotiating for an interest in Eagle instead, they said.
Eagle is seeking to raise as much as £250 million ($316 million) through the issue of convertible shares, one of the people said.
Keith Harris, the veteran football financier, is advising Sportsbank, the people said, asking not to be identified discussing confidential information. Textor has seen proof of funds and has made Sportsbank his preferred bidder for an equity stake, one of the people said. Eagle will continue to pursue the sale of a stake in Crystal Palace, the person said.
Acquiring a stake in Eagle would give Sportsbank exposure to a stable of football clubs that includes Crystal Palace, French Ligue 1 team Olympique Lyonnais, Brazil’s Botafogo and RWD Molenbeek of Belgium.
Deliberations are ongoing and there’s no certainty they’ll lead to a deal, the people said. Representatives for Eagle and Sportsbank declined to comment.
Eagle is working to raise $1.1 billion in equity and debt to recapitalize the business ahead of a potential initial public offering in New York. Textor has already said he’s raised $40 million from Portuguese investment fund UCEA Capital Partners. Meanwhile, Botafogo’s recent victory in the Libertadores final is expected to bring some much-needed cash to Eagle.
But Textor is separately waiting to see if Lyon will be relegated in France because of its high debts.
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