Chen sells Espanyol, but not definitively

BarcelonaThe Rastar Group, which owns 99.66% of RCD Espanyol's shares, has recently reached an agreement with Velocity Sport Limited (VSL), an English-based subsidiary with American shareholders, to become a shareholder in the holding company and form part of a strategic alliance that will transform the group's current strategic alliance. The Catalan entity announced this in a brief statement on its website.

VSL is the English sports subsidiary of the ALK Capital Group. directed by Alan Pace, who was at the Ciudad Deportiva Dani Jarque this morning with Mao Ye, CEO of Perico, and other club employees. In this way, the American, who has been negotiating the purchase of Espanyol for months, will become the new majority shareholder in exchange for a payment to Rastar Group of 130 million euros, as the Chinese company has announced to its shareholders.

Of this amount, 65 million will be paid in cash to Rastar and the remaining 65 million in shares of Velocity Sport Limited. This means that when the transaction closes, the Chinese conglomerate led by Chen will hold 16.45% of the shares of the holding company that will feed Espanyol and Burnley. Within two to five years, the Chinese conglomerate will be able to sell its stakes to ALK Capital and VSL for 81 million euros, a figure higher than the current 65 million euros.

Both the blue and white and English teams will be part of this investment group—although each remains independent—which expands its interests by including a club in the top flight of La Liga and another in the Premier League. It's not out of the question that VSL will expand its club portfolio in the coming months with the acquisition of another team, following the City Football Group model.

This business integration formula allows for the coexistence of two historic club models, each operating independently, although they will be supported by the same economic group, VSL. This operational independence is key to a potential overlap in a European competition, as UEFA is very strict with timeshares in European football. A year ago, Girona had to make changes to its board of directors in order to compete in the Champions League, as Manchester City was also competing.

Chen is not leaving Espanyol.

Rastar, to whom Espanyol now only owes seven million euros due in August 2026, is not disengaging from the club, but it does cease to be its majority shareholder. From now on, it will hold a minority stake (16.45%) and will become part of this new investment vehicle, which will have stakes in both clubs. Likewise, with this step forward in management, the Asian conglomerate reaffirms its conviction that this integration into the VSL group will strengthen both Espanyol's economic and sporting structure. This process, despite the agreement reached, is still pending officialization and completion until all administrative procedures are formalized. The deadline is October 31, although both parties may decide to extend it further.

The transaction must receive the green light from Rastar's CSD and shareholders' meeting, and requires certain deposits to be made as a guarantee. The club admits that it's a process that will take weeks, but they are confident that a shareholders' meeting could be convened starting in September to appoint a board of directors and, if applicable, a new president to represent the new shareholders. The change of ownership will not affect the sporting planning, led by Fran Garagarza, for the upcoming season.

Rastar will divest from football.

Rastar justifies the sale as a measure to carry out a "strategic adjustment with the aim of focusing on its core business." The company "will divest its football club business and focus its resources and energies on businesses such as video game development and distribution, the toy brand, and the application of artificial intelligence technology," it explained to its investors. "This will help reduce uncertainty about future earnings," it says, "as Espanyol's performance has fluctuated considerably in recent years, which has somewhat affected the company's profitability."

The Chinese conglomerate landed at Espanyol in January 2016, when it acquired more than 50% of the club's shares. Upon his arrival, Chen Yansheng stated that he saw the team in the Champions League "in less than three years." In 2019, the Catalan side qualified for the Europa League, but the following season they were relegated to the Second Division 25 years later.

The Chinese businessman, who has invested more than 240 million euros in the Perico club and who has not visited Barcelona since August 2022, has accumulated two traumatic relegations, as well as two promotions and an agonizing permanence, sealed on the final day of last season. The salvation, together with the sale of Joan Garcia to Barça and the capital increase of 32 million euros a few weeks ago, has allowed Rastar to clean up a financially delicate club, which is now changing hands but without definitively saying goodbye to Chen.