As owner of Botafogo, he will invest R $ 2.2 billion to buy Leon.

Botafogo owner Leon and American John Textor announced a preliminary deal to buy the French club this week. The operation is quite complex as the team has different shareholders and types of shares. Finally, the planned investment of the entrepreneur is at least 413 million euros (R $ 2.2 billion) – the cost may be higher depending on some variables.

To do this calculation, the blog had the help of economist Caesar Graffiti, a club finance expert. All calculations were based on Leon’s own official financial announcement about the operation.

Both Lyon and Botafogo were bought by a company called Eagle Football Holdings LLC, which is owned by Textor and is based in the United States. The statement also mentions businessman Jim Salter as a partner.

There is a big difference in the amount invested in Lyon for Botafogo: it is five times. Textor bought SAF from Elevenigro Club with an investment guarantee of R $ 400 million for 90% stake. This difference is understandable, given the difference in exchange rates, revenue and the club’s access to the Champions League.

With that said, let’s get down to business. Lyon has two equity teams: 1) Direct Group Ownership 2) Debt Guarantees that can be converted into shares (ASRIN) that were created to build a new stadium and pay off debts. These two types of shares are cut between Pathé, IDG, Holnest and the general public. Hollist is owned by Jane Michael-Owls, who runs the club and will be a member of Textar.

Initially, Textile’s company will buy a 66.56% stake in the club. The fixed price is 3 euros per share, well below the current exchange rate. There are about 59 million shares in total. Eagle Holdings will pay 117 million euros for the package.

In addition, the US merchant will purchase a package of Osiris bonds that will become 69.9 million shares in exchange. He will pay an additional 209.7 million euros for the package.

Textor has also pledged an additional 86 86 million to increase Leon Group’s capital. As a result, its estimated base investment is 413 million euros (R $ 2.2 billion). With that amount, Eagle Holdings will own 80% of Leon’s shares, valued at € 529.5 million.

Other additional investments may be made by text as provided in the notice. If the public accepts the € 3 offer and Holnest himself, he can still buy weak shares from the public. In fact, together with Holnist, he will own 88% of the capital of Lyon, which is equal to his control in Botafogo.

Holmes owner Olas will continue to serve as Leon’s manager for at least another three years. Finally, Leon reported that it was valued at 884 million euros.

In Texter’s words, the relationship between Leon and Botafogo will be one of community. In his statement about the French club, the businessman said that his investment in Lyon football clubs was the “center” and “cornerstone” of his plan. It is obviously the biggest investment of an American businessman in football. Globo Esporte columnist Paulo Vinceus Coelho said governance in Brazil is a priority because Leon will be managed by Olas.

Griffith analyzed that the structure of multi-club groups is becoming increasingly common in world football. There is a strategic advantage to creating recipes in different countries and a standard sports culture.

“One of the most exciting strategies to add value to a football club is to own multiple clubs in different markets. Standard training, access to players and techniques from different countries.

And there are many operating models, such as the Red Bull case, which uses football to market in many countries, including the Central Club (RBLeipzieg) as well as the City Football Group. And models with more competitive clubs are being developed, as is the case with Texter. 777 partners are developing something like this, and to some extent Valladollid and Cruzeiro’s relationship puts Ronaldo in the same profile. There are several groups specializing in this concept, and each group will find a model that meets the shareholder goals, “he said.

To see how Textor will put his clubs into practice, including Crystal Palace, minority shares in the Premier League and control of Mullenbeck in Belgium’s second division.

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