When John Textor bought Olympique Lyonnais in 2022, he promised to build a football empire. His company, Eagle Football Holdings, soon owned clubs across three continents: Lyon, Botafogo (Brazil), and RWD Molenbeek (Belgium) — with a minority stake in Crystal Palace. The idea was clear: a multi-club ownership model that could share data, players, and strategy, just like a portfolio of assets.
But this global network was built on debt, and that debt has now caught up with him…
A $450 Million Reality Check
In October 2025, Eagle Football defaulted on roughly $450 million in loans owed to Ares Management, a major U.S. private-credit investor. The loans were mezzanine-style — high-risk, high-interest debt used to finance acquisitions when traditional banks stayed away.
To fund Lyon and others, Eagle borrowed at terrible rates:
- $300 million at 16%,
- $135 million at 18%, and
- another $159 million at 19.4%.
These loans also used payment-in-kind (PIK) interest, meaning when no cash payment was made; interest was added to the debt. The result: the longer it went, the bigger the bill.
By 2025, Eagle Football’s total debt had swelled past $1.2 billion, while its clubs were losing money. Lyon, for instance, generated around €368 million in revenue but still reported losses. The group’s interest coverage ratio (the measure of how easily it could pay interest from earnings) was well below 1, signaling that it was burning cash rather than generating it.
Ares Offers Temporary Relief
Rather than seize assets, Ares Management agreed to a 12-month standstill — effectively a grace period to avoid immediate liquidation. The lender had already clawed back part of its money when Textor sold his 43% stake in Crystal Palace for £190 million, most of which went to Ares.
During this standstill, Eagle must restructure or sell assets — potentially including part of Lyon or Botafogo — or face enforcement once the year expires. For now, the group remains under heavy scrutiny, and Textor has reportedly lost operational control.
Lessons for Football Finance
Eagle Football’s fall shows the limits of private-equity-style leverage in a volatile industry. Football revenues fluctuate with performance, while expenses (wages, transfers, stadium costs) are fixed and rising. Using 15–20% debt to buy clubs only works if valuations or profits soar.
The case also exposes the systemic risk of multi-club ownership: when one entity defaults, it can drag several teams into crisis. Lyon faced temporary financial sanctions from France’s regulator; Botafogo had its ownership structure frozen by Brazilian courts.
As private investors continue pouring billions into the game, Eagle’s story is a warning shot. Ambition alone isn’t enough — without sustainable cash flow, leverage becomes a ticking time bomb.
In short, Eagle Football tried to build a football empire on borrowed money. It ended up proving what financiers already know — in football, as in business, debt eventually demands repayment.