Predators at the gate

Eagle Football’s collapse exposes the systemic risks of private credit in European football. Is Chelsea next in line?

By Paul Quinn, football finance expert 

This is the second part in Josimar’s dossier on the impact of private credit on European football. In the first part, Josimar broke down how private credit works. 

From initial loan through to administration, Eagle Football Holding serves as an illustration of the private credit model in European football through its relationship with Ares Management, which concluded with the administration of the holding company in March 2026.

American entrepreneur John Textor acquired Olympique Lyonnais in December 2022 for approximately €800 million, funding the acquisition with private credit from Ares Management structured in multiple tranches: an initial $275 million at 16 percent and $150 million at 18 percent, all with PIK interest mechanisms that added unpaid interest directly to the principal balance rather than requiring cash payment. The total Ares exposure compounded rapidly. By late 2025, the aggregate balance had reached approximately $1.2 billion, with emergency tranches issued in July and October 2025 carrying rates as high as 19.4 percent.

The underlying logic of the PIK structure defined the trajectory. A club or holding company borrowing at 18 percent PIK does not pay interest in cash: instead, that interest is added to the principal, which then itself attracts further interest. A $500 million PIK loan at 18 percent becomes approximately $590 millio...