Chen sells Espanyol to Burnley owner, but is not leaving permanently

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 company with American shareholders, to become a shareholder in the holding company. This will make it the only club to form part of the group's strategic alliance to date. The Catalan club 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 Dani Jarque sports complex this morning with Mao Ye, CEO of Perico, and other club employees. Thus, the American businessman, who has been negotiating the purchase of Espanyol for months, will become the Catalan club's new largest shareholder in exchange for a payment to Rastar Group of €130 million, as the Chinese company has announced to its shareholders.

Of this amount, €65 million will be paid to Rastar in cash; and the remaining €65 million will be paid in shares of Velocity Sport Limited. This means that, when the transaction closes, the Chinese conglomerate led by Chen Yansheng 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, a figure higher than the current €65 million value.

Both the blue and white and English teams will be part of this investment group, although each remains independent, which expands its interests by having a club in the top flight of La Liga and another in the Premier League. It is 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 models of historic clubs, which will operate independently, although they will be supported by the same economic group, VSL, the Champions League, in which Manchester City also competed.

Rastar, to whom Espanyol now only owes seven million euros due in August 2026, is not disengaging from the club, but is no longer its largest shareholder. From now on, it will hold a minority stake (16.45%), becoming part of this new investment vehicle that will have a stake in both clubs. Furthermore, with this step forward in management, the Asian conglomerate is firmly convinced 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 be approved by the CSD and Rastar's shareholders' meeting, and requires certain deposits to be made as a guarantee. The club admits it's a long process that will take weeks, but they are confident that a shareholders' meeting could be convened as early as September to appoint a board of directors and, if applicable, a new president to represent the new shareholder base. Espanyol's change of ownership will not affect its sporting planning, led by Fran Garagarza, for next 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, as Espanyol "has fluctuated considerably in recent years, which has somewhat affected the company's profitability."

The Chinese conglomerate landed at Espanyol in January 2016. Upon his arrival, Chen Yansheng stated that he saw the team in the Champions League "in less than three years." He hasn't visited Barcelona since August 2022, has accumulated two traumatic relegations, as well as two promotions and an agonizing stay, sealed on the final day of last season. Without saying goodbye to Chen Yansheng for good.