The latest developments coming from Germany could soon impact the ownership situation around Crystal Palace.
The ownership situation around Selhurst Park is once again on the rocks after John Textor announced he was looking into selling his shares in Crystal Palace.
The American businessman grew tired of his lack of control in making decisions at Palace, despite owning 45 per cent of the club.
His multi-club model has therefore determined that the Eagles aren’t compatible with the model and he is now being rumoured to hold an interest in acquiring Everton instead.
This gives someone the chance to become invested in Palace and acquire the shares, with early reports suggesting Steve Parish could look to increase his 10 per cent.
Now, a new update in Germany has suggested something interesting could potentially be on the cards.
What has been happening in Germany and with David Blitzer?
For Crystal Palace, eyes will be on the current developments at Augsburg with David Blitzer, and there will be much consideration over what it might mean for the Eagles.
It’s been reported by Bloomberg, that the American sporting tycoon is now looking to sell his shares in Bundesliga side Augsburg in a deal which values the German club at £128m.
A deal like this could also have an impact on Crystal Palace, with the shares of Textor up for grabs and the timing of Blitzer selling his shares in Augsburg.
Blitzer owns multiple high-level sports teams including the NBA franchise Philidelphia 76ers and also the NHL side New Jersey Devils.
What does this mean for Crystal Palace?
TBR’s football finance expert Adam Williams has spoken with We Are Palace in order to provide some more clarity on what Blitzer selling at Augsburg has to do with Crystal Palace, shares whether Textor’s shares might be his target with the finance raised from selling at Augsburg.
“Augsburg are valued at around £128m at the current exchange rate. With Blitzer owning a 45 per cent stake, that means he could theoretically expect to trouser around £58m from the sale of his shares.
“In reality, there is some margin for error with that number. One school of thought would suggest that a buyer would need to pay a premium to acquire his minority stake.
“On the other hand, market forces and developments at governance level in Germany could diminish the value.
“Germany’s exemplary 50+1 rule has been largely upheld after recent landmark rulings from Germany’s top monopoly court and the European Court of Justice.
“While that represents a victory for fans, it is a blow for investors and will likely bring the enterprise value of Bundesliga clubs down over time. Either way, the price Blitzer recoups for Augsburg alone will not be sufficient to purchase all of Textor’s shares.
“It could, however, potentially provide a platform while he goes to the market and seeks a financing deal from a lender in order to obtain the necessary capital. Whether this is in his plans is up for debate, but theoretically, there is a pathway there.”
Given Parish’s reported interest to also acquire more shares, perhaps he and Blitzer end up both going for Textor’s shares. But we will have to wait and find out what happens.
The post Explained: What David Blitzer selling his Augsburg shares could mean for Crystal Palace and John Textor appeared first on We are Palace.