John Textor’s valuation of his shares in Crystal Palace has been branded as ‘utopian’ given what’s currently going on at Lyon.
Journalist Sacha Tavolieri has that criticism today, covering the situation at the French club and explaining how that could reflect on Crystal Palace.
He explains that a ‘financial influx’ is currently needed at Lyon to help their ailing finances and that if ‘cash/liquidity’ doesn’t arrive by Christmas the club will be downgraded as a precautionary measure.
The club would have been helped considerably if Textor and the Eagle Group had managed to complete a takeover at Everton, or managed a full takeover at Selhurst Park, but that has not been the case.
The current shares in Crystal Palace are valued at €200m but the reality is that should be questioned as who would pay such a figure to not be the majority shareholder and let someone else ‘play with their money’.
That valuation is ‘utopian’, and the problem could be about to get worse. That’s because if another group, ARES, stop lending funds to the Eagle Group of clubs then ‘everything will collapse’.
The hole in the finances will not be filled with a €30m player sale and Textor’s personal fortune won’t be big enough to fill the deficit.
The consequences from there could be ‘violent’, with it even possible that ARES step in to take charge of the clubs that Eagle fully control, such as Lyon.
This is something other groups have done, such as Elliot Management at AC Milan, to help ensure temporary transition and maintain the viability of the projects.
