Meet the man behind the cryptocurrency group trying to buy in to Australian soccer
The London-based cryptocurrency group that is on the brink of purchasing A-League premiers Perth Glory held talks with a French club last year that were ended because its "credibility" could not be guaranteed.
The London Football Exchange (LFE) reached an agreement on Wednesday night for a majority takeover of the Glory, but it needs approval from Football Federation Australia to be made official.
FFA was on Thursday morning still trying to ascertain the finer details of the deal, which is purported to be a world first and is being paid for by blockchain "tokens" sold to fans around the world, who would in turn own shares in the club.
Glory chairman Tony Sage, who was also made chairman of the LFE last month, is in Europe but is planning to remain at the helm of both organisations after the sale.
The LFE is aiming to create a City Football Group-style portfolio of clubs around the world - and while Perth is the first club with which it has reached an agreement, it appears the group has tried, and failed, to buy teams in Europe.
In June, the LFE was in discussions with French Ligue 1 outfit FC Nantes, who are owned by Polish millionaire Waldemar Kita.
Perth Glory chairman Tony Sage will stay on at the helm of both the club and the London Football Exchange after the sale.Credit:Tony McDonough
But according to a statement on the FC Nantes website at the time, LFE had "spontaneously presented itself" as a candidate to buy the club and negotiations quickly ceased when the group could not provide the "minimum bank guarantees" required.
"Waldemar Kita reaffirms his attachment to FC Nantes, his players, his employees and his supporters and will never leave the future of the club in the hands of candidates who do not assume their responsibilities and whose seriousness and credibility are not not guaranteed," the statement said.
Reports in the French press suggest the proposal was tied up with another Swiss-based investment group. The Herald has contacted Sage and LFE founder Jim Aylward for clarification.
In the statement announcing a deal had been reached with the Glory, the LFE claimed to have raised $70 million in a "digital token offering" in 2018, and had recently launched the LFEC token on Bithumb Global and StellarX.
Sources at FFA said while the governing body was well aware of Sage's desire to sell part of Perth Glory, it was "surprised" by the news of an agreement with LFE and was yet to see anything in writing relating to the deal.
Aylward said LFE was committed to bringing marquee players to Perth but also "blooding" youngsters and academy products from other clubs that will be added to their family in the A-League.
"We're talking to Premier League clubs at the moment, we're talking to clubs in Ligue 1 in France and clubs in Spain. All top-tier clubs, all tier ones," Aylward said in an interview with SEN Radio.
"This is a long-term, ongoing project. The idea is to create a route for players, from South America, from Africa, into Europe and then off into China. We've got no intention of being fly-by-night and doing a quick flip."