The US financial investor Apollo Management has granted Nottingham Forest a high-interest loan of £80 million. This Premier League club wants to repay existing debts and improve its liquidity. For Apollo, it is the first known entry into English top football.
According to company documents, the loan was agreed in December as a three-year term loan at an interest rate of 8.75 percent annually. Around £55 million was used directly to repay an existing loan with the Rights and Media Funding Group — a lender that had also financed Everton, among others. The remaining £25 million is available to Nottingham Forest as additional working capital.
The loan is secured, among other things, by the club's stadium, the City Ground, which is to be rebuilt as part of a planned modernization. A section of the stands will be newly constructed to increase the capacity to 35,000 seats.
The involvement of Apollo reflects a trend: More and more US private equity groups are pushing into the European football market with high-interest loans. Some of the best-known examples include Chelsea and Olympique Lyon, which have also financed themselves with US investors. Lyon pays interest rates of sometimes over 19 percent on parts of its debt load of over $400 million with Ares.
In parallel, Apollo is currently negotiating with Atlético Madrid about a stake. The entry of the Americans could take place as part of an €800 million real estate project around the Spaniards' stadium.
Nottingham Forest, owned by Greek shipowner Evangelos Marinakis, reported an operating loss of £73 million in the past financial year. However, through player sales worth over £100 million, a profit of £12.1 million was achieved.
Athletically, the club struggled with a deduction of four points due to breaches of the Premier League's "Profit and Sustainability" rules and temporarily slid into the relegation zone. Financially, however, reaching the Europa League in the coming season should bring relief. Forest benefited from the disqualification of Crystal Palace, which was excluded due to shared ownership structures with Lyon.
Apollo and Nottingham Forest declined to comment.
