The Guardian: Former Crystal Palace owner faces $97 million claim, multi-club group involved in financial disputes

The Guardian reported that former Crystal Palace owner John Testall suffered a setback at the British Commercial Court and was ordered to respond to an investor's claim for $97 million (approximately 72 million pounds) against his multi-club group Eagle Football.

The dispute stems from Iconic Sport’s purchase of 15.7% of Eagle’s shares for US$75 million three years ago. Eagle holds majority stakes in Lyon, Botafogo in Brazil and RWD Brussels in Belgium (formerly RWD Molenbeek). Eagle was Crystal Palace's largest shareholder until July this year when Tektor sold 43% of his shares to Woody Johnson, the former US ambassador to the UK.

In July this year, Iconic filed a lawsuit against Tektor, accusing him of failing to fulfill his contract, which required him to buy back $75 million of Eagle's shares and pay 11% annual interest if it did not go public. Tektor countersued Iconic in the U.S. District Court for the District of Florida, claiming he was defrauded, but the court this week rejected his motion and ruled that the case should be heard in the United Kingdom.

Tektor claimed in its defense that Iconic failed to provide the documents required to complete the transaction, specifically the stock transfer form and stock certificates, so the repurchase obligation was never triggered. Commercial Court Judge Perrin sided with Iconic in a preliminary ruling.

A spokesman for Iconic Sports said: “Today’s decision by the UK Commercial Court clearly confirms that John Tectole willfully breached his contractual commitments and owes Iconic Sports Sports about $97 million (not including legal fees). Iconic intends to recover the funds it deserves and will take all measures in any jurisdiction."

Tektor confirmed that it will appeal: "Although this is only a preliminary hearing, I am disappointed that this lawsuit has not been concluded at the beginning."

Tektor has gone through a difficult time since watching Crystal Palace win the FA Cup at Wembley. In addition to selling his shares in Crystal Palace, he resigned from the Lyon board in June after Lyon broke financial rules and was relegated to Ligue 2. Although Eagle remains Lyon's largest shareholder and the club has been restored to the top flight. Since leaving Crystal Palace, Tektor has held talks with Sheffield Wednesday owner Dejvon Chansley over a takeover and has publicly confirmed interest, but has yet to meet the asking price.

In the commercial court case, Iconic questioned whether Tektor had the funds to repay the alleged debts and the source of his funding for the proposed takeover of Sheffield Wednesday. He attempted to buy Everton last year but failed to materialize despite exclusive talks with then-boss Farhad Moshiri.