- Raine Group was involved in the sale of Chelsea and Sir Jim Ratcliffe’s investment in Man United
- Crystal Palace have now spoken to them amid their dismal form
- Be careful what you wish for Palace fans! Do you want to become a yo-yo club? It all starts
Crystal Palace have held talks with football club sales specialist Raine Group amid criticism from fans over their ownership and tensions in the boardroom.
The American bank carried out the sale process of Chelsea two years ago, as well as Sir Jim Ratcliffe’s purchase of 25 percent of Manchester United, with Palace also looking for additional investment.
Palace sources told Mail Sport that talks with Raine are aimed at raising money to help fund the redevelopment of Selhurst Park.
The club has been granted planning permission for a £150 million extension to the main stand. Construction work will start later this year. However, around £45 million of additional funding is needed due to rising costs.
Although the club is not being put up for sale, Raine’s involvement could attract interest from potential buyers given the bank’s close ties with some of the richest sports investors in the world, not least the dozens of billionaires who were unsuccessful in the Chelsea and United auctions.
Pressure is mounting on Roy Hodgson after Crystal Palace were beaten 5-0 by Arsenal
Their fans unfurled a banner denouncing the ‘weak decisions’ made at the club
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Although not at that level, Palace is an attractive proposition as an established Premier League club close to central London, with independent experts valuing the club at around £750 million.
Palace insist they are not considering selling the club and that all existing shareholders remain committed investors, but there are tensions behind the scenes.
Chairman Steve Parish and US shareholders Josh Harris, David Blitzer and John Textor all have an equal stake in the management company that runs Palace, despite having significantly different interests, with Parish having the casting vote despite owning less than 10 percent of owns the club’s shares.
Parish has been Palace chairman since 2010 when he rescued the club from administration and the threat of liquidation, but despite this rescue move he has faced increasing criticism from fans in recent years.
During Palace’s 5-0 defeat to Arsenal on Saturday, several protest banners were unfurled in the away match, with one reading ‘Parish out, Yanks out’. Another banner castigated the club for “wasted potential on and off the pitch” and “weak decisions that are taking us backwards.”
Parish has repeatedly tried to bring additional investment to Palace in recent years, but the result has been a boardroom deadlock without a major increase in the club’s purchasing power. US NBA owners Harris and Blitzer paid a combined £50m for 18 per cent each of the club’s shares in 2015, while Lyon owner Textor spent £86m on a 40 per cent stake three years ago.
There have been calls for co-owner and chairman Steve Parish (pictured) to leave, and the club has now held talks with football club sales specialist Raine Group
Textor has since increased his shareholding to 45 percent, although it was reported earlier this month that he was considering selling some of his stake due to frustration with his limited influence.
Despite complaints from fans, Palace are in a healthy financial position, with the club having significantly reduced losses and wage costs in recent years. Palace also boasts a prolific Academy that has produced key assets such as Michael Olise and last year secured planning permission for a major extension to the main stand at Selhurst Park.
All four shareholders have committed their own money to the rebuild, which will increase the ground’s capacity from 26,000 to more than 34,000 and add around £30 million a year to their matchday revenues, but costs have since fallen by around 50 per cent increased. the first plans were drawn up five years ago and now additional funding is needed.
Palace and Raine declined to comment.
