An unsuspecting US billionaire shakes up the transfer market
Brazil, Belgium, England, France: In this quartet, football investor John Textor is causing a stir on the transfer market himself. High transfer fees and dubious lease agreements certainly pique the interest of competitors - but Textor's tricks are not illegal.
Summer time, transfer market time: While Bundesliga teams are slowly getting into the swing of things when it comes to new signings and sales, a billionaire in France is merrily spending millions. Olympique Lyon is chasing a record transfer this week. John Textor must be careful at the four international clubs he has under his control to avoid violating the Financial Fairplay of the UEFA and the financial oversight of the respective leagues.
Lyon longs for the glory of yesteryears with superstars like Karim Benzema and Juninho, the serial champions from 2002 to 2008, now a gray mouse in the French Ligue 1 - Lyon is no longer a factor in the title race. Textor aims to change that with his investment group Eagle Football Holdings, which besides OL also owns 40% of Crystal Palace, 80% of RWD Molenbeek in Belgium, and 90% of Botafogo in Brazil. Between these clubs, the 58-year-old has spun a transfer network.
Last summer, Molenbeek signed the then 19-year-old Ernest Nuamah for 25 million Euro. He was the most expensive sale in Danish football - Nordsjaelland was the selling club - and the most expensive purchase in Belgian football. Nuamah never played a game for Molenbeek, but was immediately loaned to Lyon, who were under scrutiny from the French financial control body DNCG at the time. A year later, Nuamah was bought for 28.5 million Euro. Lease agreements from Duje Caleta-Car, Said Benrahma, and the former Stuttgart player Orel Mangala were also converted into fixed transfers. The total cost: around 40 million Euro.
A record is being chased
Brazil was already involved in the lively dealings along the Rhone in the winter. Back then, two players from Botafogo moved to Lyon - Adryelson and Lucas Perri, each for around 3.5 million Euro. These transfer fees were not market-conform, as Botafogo and Lyon now both hold 50% of the transfer rights and would profit from any further sale.
Currently, Lyon is Textor's main focus, where he is President, Managing Director, and Shareholder. The transfer fees caused a stir there at the beginning of July, setting new records within a week. Mangala was the most expensive club transfer for two days with 23.4 million Euro, then came the previously mentioned Nuamah, who was surpassed by Moussa Niakhaté for 31.5 million Euro the next day. Mangala and Niakhaté came from Nottingham Forest, a Premier League club that had already been penalized for its transfer spending and violation of sustainability regulations in the league.
Curiously, Nottingham Forest wishes to replace Niakhaté with a defender from OL - the Irishman Jake O'Brien - and is reportedly ready to pay around 34 million Euro. Three times the market value. The 23-year-old was active in Crystal Palace's second team for a long time, was then loaned to Molenbeek, and was sold to Lyon last summer for a modest million. So, millions were simply transferred back and forth without adequate countervalue.
"A man understands investors well. Textor felt pity for Nottingham Forest owner Evangelos Marinakis after the points deduction. "Does that make sense? Marinakis has a lot of money to finance his team, but he can't. If he spends too much and caters to the fans, someone comes and takes points away? That's not right."
"Financial Fairplay is a deceitful term"
Funny, these Premier League rules. Since 2013, the "Profit and Sustainability Rules" (PSR) have applied, which allow clubs to make a maximum deficit of 105 Million Pounds (136 Million Euro) over three seasons, provided the club owners can offset 90 Million (106 Million Euro) of it. Textor is not tired of mentioning what he thinks of the English PSR system. "Financial Fairplay is a deceitful term when it comes to sustainability." The rules were made so that clubs, which do not generate significant revenues, cannot catch up sports-wise. "When it comes to sustainability, it should be about the quality of the balance sheet, not the figures in the profit and loss statement."
No football expert is speaking, but a financier. Textor, who made his money in Hollywood with animation studios, is still working on achieving a title with one of his clubs. His engagement at Crystal Palace is soon coming to an end. He is actively looking for a buyer for his shares, Textor said in May. Instead, the American wants to take over FC Everton.
Meanwhile, a new player swap is already in the works in Lyon: In July, Argentine Thiago Almada will transfer from MLS club Atlanta United to Botafogo for 19.5 Million Euro. The most expensive departure in MLS history and a record transfer for the Brazilian League, whose clubs usually finance themselves through sales of this magnitude. Almada will not stay long. According to media reports, the 23-year-old will go to Lyon in January, and Botafogo's season will end then. In the books, there will probably be a loan or a partial transfer, which will not alarm the financial authorities. Textor's tricks are once again in full swing."
In the vibrant Premier League transfer market, Olympique Lyon's record-chasing transfers, spearheaded by investor John Textor, have caught the attention of rival clubs. Textor, with his investment group Eagle Football Holdings, has a significant stake in multiple soccer clubs, including Crystal Palace in the Premier League.
Nottingham Forest, another Premier League club, is reportedly interested in a defender from Lyon, potentially paying a substantial fee, despite their previous violations of transfer spending and sustainability rules. This potential deal, if it materializes, would involve the transfer of value between these two clubs.
