Ares Capital Slashes Eagle Football Loans Valuation by 80%, $57.8m Loss
ARES•Ares Management’s Ares Capital unit cut the valuation of its Eagle Football Holdings loans by 80%, flagging a $57.8m unrealized loss after placing the sports group into administration. The firm, which oversees $644bn in assets, now faces a legal dispute with owner John Textor over alleged collusion in Lyon’s takeover.
1. Valuation Writedown Details
Ares Capital recorded an 80% writedown on loans to Eagle Football Holdings, flagging an unrealized loss of $57.8m as it marked down the debt after placing the sports group into administration in March.
2. Debt Background and Asset Recovery
Eagle Football’s leveraged expansion, with stakes in Crystal Palace, Botafogo, Lyon and RWDM Brussels, drove debt to $1.2bn; proceeds from the £190m Crystal Palace sale last July were primarily used by Ares to recover outstanding loans.
3. Legal Dispute with Owner
Owner John Textor accuses Ares of colluding with other creditors to seize Lyon’s ownership and has vowed to pursue legal action, while Ares Management has stated it will defend the writedown through proper legal channels.
4. Private Credit Sector Risks
The writedown underscores the risks in private credit to high-leverage sports ventures; Ares, with $644bn in assets under management, joins peers like Blackstone and Apollo in managing backlash from these high-risk loans.
