Millonarios takeover talks falter over stadium concerns

Kapital Football Group has reportedly pulled out of negotiations to acquire control of Millonarios, with uncertainty surrounding Bogotá’s El Campín stadium emerging as a central concern for the prospective buyer.The investment group, associated with Joseph DaGrosa and Hugo Varela, had been examining a purchase of the majority stake held by Amber Capital and had undertaken due diligence on the Colombian club.Analyst Antonio Casale said: “We are in a position to report that Kapital Football Group is withdrawing from negotiations to buy Millonarios. There was a lack of clarity from the club on several issues, and they find the stadium situation highly concerning. Despite having completed all the requirements, they are withdrawing from negotiations.”The reported withdrawal follows weeks of disruption at El Campín, where the condition of the pitch forced the cancellation of Millonarios’ match against Once Caldas shortly before kick-off on October 13.Bogotá’s sports and recreation authority, IDRD, subsequently began examining possible failures by Sencia, the concessionaire responsible for managing, operating and maintaining the venue.The city announced administrative proceedings against the operator on October 23, with a hearing scheduled for October 29 at which Sencia is due to present its response to the alleged contractual breaches.The stadium situation is particularly relevant to the acquisition because Millonarios rents the venue for matches and does not control its construction or redevelopment.Journalist Juan Felipe Cadavid said his own source supported the account that Kapital had sought greater clarity about those arrangements.Cadavid said: “They asked Millonarios: ‘Tell us how the stadium situation works.’ And what did Millonarios tell them? ‘That does not depend on us. We are not building the stadium, we have nothing to do with its construction. We simply rent it for our matches.’ That had them concerned.”IDRD has also required stronger protection, recovery and contingency plans for the pitch as the stadium balances football with concerts and other events.A separate account raised the possibility that the parties also differed over valuation, although that explanation has not been established as the reason for the reported withdrawal.Cadavid said: “There is another version which also says, or adds, that Kapital had already made an offer for a certain amount, and that Millonarios’ board said: ‘No, we do not agree with that amount.’ There are two versions. That does not mean both cannot be true.”The negotiations had appeared to be progressing during September and October, with Varela attending Millonarios’ match against Boyacá Chicó at El Campín on September 19.Amber Capital holds approximately 86% of the club, which remains under its existing ownership structure.The reported end to Kapital’s talks leaves that proposed change of control stalled, with the stadium arrangements and any differences over price remaining unresolved.