Ares Management Corp. Appoints Administrators for Eagle Football Holdings

Ares Management Corp.'s flagship football investment, Eagle Football Holdings Bidco Ltd, has entered administration following a default on its debt. The restructuring advisory firm Cork Gully has been appointed as the administrator. This form of insolvency, initiated by a creditor, does not extend to any subsidiaries, including the football clubs owned by Eagle, which continue to operate normally. Cork Gully stated that its immediate priority is to stabilize the company and manage its shareholdings responsibly while working towards securing the future of the involved clubs.

BloombergEagle Football Group moves to reassure after Eagle Bidco administration and John Textor departure | OneFootball

The administration process is rooted in a contentious relationship between Ares and John Textor, the majority shareholder of Eagle Football Holdings. Ares extended a loan exceeding $400 million to Eagle Football Holdings LLC, which Textor utilized to finance the acquisition of French club Olympique Lyonnais in December 2022. However, Eagle's financial situation has deteriorated since then, leading to Ares' decision to seek administration.

BloombergEagle Football Group moves to reassure after Eagle Bidco administration and John Textor departure | OneFootball

Eagle Football Holdings and Textor expressed strong objections to the appointment of an administrator, labeling it a "unilateral and predatory decision" by Ares. They asserted that the business remains financially viable and projected that the clubs would achieve positive cash flow by 2026 if operated collaboratively. In contrast, Ares responded by stating that it would defend its position against what it described as "highly misleading and inaccurate statements" from Textor.

Bloomberg

Eagle Football Holdings holds stakes in several clubs, including Olympique Lyonnais, RWDM Brussels, and Botafogo. Previously, it owned a share in Crystal Palace FC, which was sold to Woody Johnson, owner of the New York Jets, allowing Ares to recover a significant portion of its loan. Despite recouping over $200 million, Ares has marked down the remaining debt to approximately 32 cents on the dollar.

BloombergEagle Football Group moves to reassure after Eagle Bidco administration and John Textor departure | OneFootball

Critics of Ares' actions, particularly Textor and Eagle Football Holdings, argue that the decision to enter administration undermines a business that has successfully turned around financially troubled clubs. They contend that the administration process could jeopardize the future of the clubs involved, despite assurances that operations remain unaffected in the short term.

Bloomberg

The administrators from Cork Gully aim to improve the financial structure of Eagle Football Holdings or optimize repayments to creditors, which may eventually lead to the sale of a stake in the company. The situation remains fluid, with ongoing discussions about the future governance and financial health of the clubs under Eagle's umbrella.

Eagle Football Group moves to reassure after Eagle Bidco administration and John Textor departure | OneFootball

• “Our immediate priority is to stabilise the company, manage its shareholdings responsibly, and work towards securing the future of the clubs involved,” — Cork Gully, Administrator

Bloomberg