Steve Pagliuca talks update: What next for Red Star & Stade Bauer?
In light of the potential takeover of Red Star by Stephen Pagliuca, it's time to address where the talks are at and what the future holds for the club and Stade Bauer's redevelopment.
The eternal rollercoaster of emotions that is associated with being a supporter of Red Star FC over the last two years is probably enough to write a feature-length book. It would ultimately be quite an effective strain test for any base of supporters, let alone one that is struggling to preserve a historic and working class identity in the foreground of an ever-changing circus of capital above the club.
The Downfall of 777 Partners
When Patrice Haddad sold the club in 2022 to 777 Partners, he opened up the club to one of the most nefarious cases of multi-club ownership that football had ever seen. Almost two years ago I wrote my debut article for Get French Football News: "Red Star FC fans fight for the club's future and values amid 777 Partners takeover talks" after my experience following the club for 9 months as part of my university research dissertation on Red Star.
I was one of many who stood on the terraces of Stade Bauer's now-demolished west-stand, holding up a "777 Out" sign. Right from the get-go, there were red flags from Josh Wander, Steve Pasko, and his merry band of MCO enthusiasts. "You're only writing about one side of the story," a figure from the club brazenly told me several months later. "It seems you just took what the supporters were saying, and aren't looking at the full picture - just look at all the good things 777 have done".
The problem was, not a lot of people were defending the interests of supporters back then. Even Haddad - only two weeks before the allegations of fraud struck 777 Partners, told Le Parisien that meeting Josh Wander was "one of the best human experiences" he'd ever had.
It turns out that the 'full picture' was bleaker than even anyone had previously imagined. This week, the news that we knew was coming for months finally came to fruition. 777 Partners have collapsed, and the club is now in the hands of the company's creditors, A-CAP. It came after months of reports of the firm's financial instability amongst several court proceedings. The biggest lawsuit came from UK-based Leadenhall, after the Miami-based investment firm pledged assets as collateral that either didn't exist or were pledged to other parties.
After June's revelations by investigative outlet Josimar and the amazing work done by Phillipe Auclair and Paul Brown, as well as further work done by Bloomberg on the financial side, it was clear several months ago that Red Star was up for sale. To the relief of many associated with the club, Red Star is the most 'bankable' club in the 777 portfolio - mostly down to the upwards trajectory of the first team as well as the potentially profitable stadium development project alongside it.
Red Star & Bauer: Both club and stadium for sale
The club has de-facto been on sale for several months now. There have been various interested parties in the club, with the closest being Dallas-based property developer Todd Interests who entered into exclusivity with the club and development project of Stade Bauer in August. Shawn Todd was primarily interested in the reconstruction project surrounding Stade Bauer and the so-called 'Bauer Box', but a complex double-deal for both the Stadium and the club didn't transpire by the end of the exclusivity period for the club and the development of Bauer. So, no Péguy Luyindula (ex-PSG) running the show… probably for the better if you ask those of a Dijon persuasion.
Not only is the club up for sale: so is the Stade Bauer reconstruction project. Property developers RÉALITÉS have been in charge of the stadium's reconstruction since 2021, but have recently (like many in the industry) encountered financial troubles in the global property market crisis. Their revenues have fallen, and suppliers have been reportedly paid late according to Business IMMO. Whilst they were in exclusive negotiations with Todd Interests, those expired on 17th September 2024.
Thus, there are two different deals that have to be concluded for any potential incoming owner that wants control of both the club and the Bauer construction project. The latter is a complicated matter, seeing as there are existing agreements between the club, the supporters' association, and current developers RÉALITÉS over the stadium's naming rights and matters such as the prices of tickets, and the supporters' Kop. One would have to imagine that any buyer that wants any success out of the Bauer project will have to agree to or at least engage with these demands in order to facilitate a smooth relationship with the municipality of Saint-Ouen, the club, as well as (obviously) the supporters. But it is a step which complicates further any case of a double-deal for a potential incoming owner.
Steve Pagliuca and a potential Red Star deal
In late September, Bloomberg reported that Stephen Pagliuca had entered talks to buy Red Star FC. The US-based businessman already co-owns NBA club Boston Celtics as well as Serie A side Atalanta BC, winners of last season's Europa League under Gian Piero Gasperini. It was only after Josimar's revelations last week and confirmation of 777's utter collapse that the French press sprang into action.
Pagliuca and his investment fund Bain Capital have entered a period of exclusivity with the Moelis bank over the sale of Red Star, and RMC Sport reported that Stephen's son, Joe, has been put in charge to oversee a potential deal. They reported that there have been regular exchanges between him and Patrice Haddad in recent weeks. Josimar reported that the deal is at the due diligence stage, but from what I understand the talks are not yet that advanced.
The deal is moving quickly, and it would be safe to assume that the negotiations are currently over a deal for the club and not yet for Stade Bauer. This is not to say that Pagliuca could conclude a deal for the stadium afterwards, but I've not yet seen any indications on the Bauer front. I would once again urge caution, because a double-deal would be a complex move to get over the line, and one that could take several months.
Multi-Ownership again at Red Star? Where does that sit with supporters?
So, yes - seeing as Pagliuca and his investment fund already own Atalanta Bergamasca Calcio, Red Star would be part of another multi-club project, albeit nowhere near the scale of 777 Partners. In my opinion, the club has managed to thrive despite multi-ownership - not because of it. For all of my criticism of the club, there are very competent figures that have worked well below Patrice Haddad especially in recruitment of staff and the playing squad (sporting director Reda Hammache immediately comes to mind), but this is not necessarily because of any 'upside' given my multi-ownership. For sure, the club hasn't been traumatised like other 777 entities because of the laissez-faire structure in place: Red Star was simply a place to shell their money whilst they continued in what has been labelled a "giant shell game at best, and an outright Ponzi scheme at worst."
So if anyone is bold enough to claim that multi-ownership has been successful at Red Star (I'm thinking about articles written by Le Figaro and Le Parisien in the last two years) - there has been practically nothing to win, and absolutely everything to lose from it. So to see another multi-club model at Red Star doesn't thrill the supporters, even if it comes as ‘multi-club lite’. The main supporter group Tribune Della Negra have already made their demands clear:
“Patrice Haddad has to relinquish all his responsibilities at the club.”
“No multi-ownership.”
“Affordable ticket prices at Stade Bauer and transparency over the club’s finances.”
“A complete rebuilding of relations with the supporters.”
The important thing at the moment is that the club can escape the wreckage of the collapse of 777 Partners relatively painlessly. A deal is not yet completed but we can only hope that a repeat of the disaster of the past few years won't be allowed to happen again, for the sake of all associated with the club and Saint-Ouen. Because next time, Red Star may not be so lucky…
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