Why does John Textor want to buy Lyon – and how does it affect Crystal Palace?

US businessman John Textor has hit a snag in his attempts to buy French side Lyon, his ambitions complicated by a requirement to obtain the agreement of Crystal Palace’s shareholders, the club in which he has a 40 per cent stake. 

Textor’s purchase of Lyon – which was initiated in June – would see him add a fourth club to his portfolio, which already includes Belgian club RWD Molenbeek and Brazilian side Botafogo, as well as that stake in Palace.

A statement from Textor, who invested around £90million ($110.7m) in Palace in August 2021, notes that the agreement would be the final part in the jigsaw for purchasing Lyon. But why does he want to buy the Ligue 1 side and what does it all mean for Palace? 

Why does Textor want to buy Lyon?

Textor is invested in the multi-club model of ownership, similar to that of the City Football Group and Red Bull, whose stable of clubs is arguably the most successful multi-club group in global football.

Red Bull is the model American disciples of shared ownership cite most often, their family of clubs in Austria, Brazil, Germany and the US having collaborated on player development more successfully than any of the other groups.

Textor owns majority stakes in Molenbeek — competing in the same competition as fellow Palace owner David Blitzer’s S.K. Beveren side — and Botafogo, as well as a 40 per cent stake in Palace. But he sensed an opportunity to expand that portfolio by adding Lyon.

This has been in the background for some time, starting earlier this year before the attempt to make a purchase was formalised. The idea is for Palace and Lyon to sit atop the multi-club model and to benefit from the other clubs, but that all the partnerships are also mutually beneficial.

Botafogo offers an avenue into South American talent, Molenbeek enables them to gain the points required for a Governing Body Endorsement (GBE) — a points-based system in which players from overseas need to earn at least 15 points to be eligible to play for a Premier League or EFL team — and Lyon helps expand the talent pool available.

He has ambitious objectives and believes the only way to compete with the wealthiest clubs is through this multi-club model. Lyon is another step in that direction given its significant resources.

In June, when negotiations were first officially reported by Lyon, Textor said Lyon would be “the epicentre of our new organisation and our investments… the cornerstone of our project”. He said he intended to “bring out the values ​​of development and self-improvement”.

The plan was to “regain the highest level, in France and in Europe, while respecting the values ​​of the club’s DNA such as youth, work and self-sacrifice”, with a focus on the academy.

On Thursday, both Lyon and Textor denied a report on French television station Canal+ that the American’s bid for the club had collapsed.

A club statement read: “Based on the information provided by John Textor, OL Group believes that there is a sufficient probability that a closing (of the sale) will take place shortly.” 

Why does an English football club have a say in who owns a club in France?

As Textor’s shares in Palace would be moved into that new company, Eagle Football Holdings, a review is needed under the Premier League’s Owners and Directors test.

A statement from Lyon notes that the purchase of the club by Textor through Eagle Football Holdings is being held up because it requires the agreement of the Premier League, who have requested the agreement of Palace’s shareholders.

However, it notes that “significant progress” has been made, and they are “on track to reach an agreement”.

New investors would be involved and therefore would be able, as shareholders, to influence the votes of Eagle Football Holdings. This would be seen as an indirect ownership of Palace by the Premier League.

What is Textor’s long-term ambition?

Textor’s eagerness to pursue a multi-club model is out of keeping with the manner in which Palace have gone about their business since Parish, along with three others, bought the club out of administration in 2010, and then won promotion in 2013.

The argument would be that an element of evolution is required as the landscape changes. 

Parish has repeatedly spoken of an ideal scenario being that the entire Palace starting XI would consist of homegrown talent from the local area, schooled through what is now a revamped £20million academy.

He is rightly proud of the club’s dedication to improving the lives of young south Londoners, of bringing them through the youth ranks to star in the first team, and that is one of the reasons focus turned from the stadium redevelopment to the academy first.

Textor agrees with Parish’s faith in the south London talent pool and has deliberately targeted clubs in areas where there is lots of local talent and proven paths to the top of the game. This attitude also explains why he was initially interested in Benfica, as Portugal is both a producer of great players but also an importer of young Brazilian talent, and Molenbeek, as Belgium is another football hotbed. 

But Molenbeek’s usefulness in terms of producing big transfer fees is always going to be limited by their size and the unlikelihood that they will ever play in European competitions. That is where stars are created and recognised. It is also where the most GBE points are earned. Simply put, any player who has a Europa League or Europa Conference League campaign on his CV has gone a long way to qualifying for a UK work permit.

So, Textor was always looking for a bigger European club to add to the group as well, hence his move for Lyon. His proposed purchase of a majority stake in the club’s ownership vehicle, OL Group, a listed company, is a far bigger and more complicated investment than his previous football acquisitions.

For his part, Textor has never denied that he requires significant help to complete the deal, which will cost close to £700million, but his attempts to find that external investment have dragged on for over six months. The original plan was for American billionaire Bill Foley to provide the money, but he pulled out at the end of the summer and decided to buy Bournemouth instead. Textor is understood to have found new partners but it has not been easy. In the meantime, his relationship with Parish is understood to have frayed.

Palace’s situation is further complicated by David Blitzer and Josh Harris, the other two general partners at the club, having launched a takeover bid for Chelsea earlier this year. That bid was unsuccessful, but it cast clear doubt over their long-term commitment to Palace.

It is a potentially awkward situation where only Parish has his attention solely on Palace. He has always held control of the club and has overseen the most successful period in its history by doing things carefully and gradually. Caution, naturally, abounds.

But he told the HLTCO podcast that there were opportunities in tapping into the Brazilian market and that there has been success in loaning players (Jake O’Brien and Luke Plange) to Molenbeek. “Generally it’s a plus,” he said of that collaboration, adding that they are using the knowledge of people at those clubs.

The advancement of the academy was a major project and so is the stadium redevelopment. The latter requires significant capital. In 2018, it was anticipated to cost £100million. Now they will surely be looking at a figure north of that.

But would Blitzer and Harris be prepared to put funding into a long-term project? A united boardroom would certainly make matters easier, too.

An agreement with Sainsbury’s supermarket has been reached over a plot of land needed and Parish has said he hopes to break ground on the project towards the end of 2023.

Will this affect Palace’s plans for the January transfer window?

It is difficult to know. It is in everyone’s interest for Palace to improve the squad in January and Parish told HLTCO that the introduction of five substitutes has made it more important to bolster their numbers.

Patrick Vieira has repeatedly expressed the need to add players but insists it is about finding the right player, with quality preferred over quantity. The main question will be whether the finances are available.

Palace fans will be eager for this to be resolved one way or the other without any impact on the club. Some will welcome the multi-club model, but there will be others who are uncertain of its benefits. Adding another club could make that division more apparent.

(Top photo: Lyon president Jean-Michel Aulas, right, with John Textor, by Olivier Chassignole/AFP via Getty Images)