American investor Tim Leiweke has abandoned plans to acquire a 16% stake in Benfica’s football company (SAD) after the Portuguese club signaled it would oppose the transaction.

Private equity firm Entrepreneur Equity Partners (EEP) had agreed in April to purchase a 16.38% shareholding in Benfica SAD from Portuguese businessman José António dos Santos and his food industry group, Valouro, for an undisclosed amount.

However, the deal was ultimately shelved after Benfica’s board made clear it would challenge the acquisition, citing club statutes that prevent investors deemed to have competing interests from holding more than 2% of the SAD.

The restriction was considered applicable to EEP because the firm invested €100 million in Italian club Venezia FC in April. The Serie A side is currently chaired by Francesca Bodie, Tim Leiweke’s daughter.

Benfica previously relied on the same rule in 2021 to block an attempt by American investor John Textor to acquire a 25% stake in the club.

Expansion Strategy Seen as Incompatible with Benfica Rules

In a statement, Benfica explained that discussions with EEP led both parties to conclude that the firm’s long-term investment strategy could conflict with the club’s governance framework.

“During the period covered by the preliminary agreement with Grupo Valouro and José António dos Santos, Benfica and EEP held constructive meetings and exchanged information that resulted in a shared understanding that EEP’s growth strategy, which includes minority investments in other European football clubs, could potentially conflict with the non-competition principles set out in Benfica SAD’s statutes,” the club said.

As a result, Benfica and EEP jointly agreed that the firm would not proceed with an investment in Benfica SAD.

Continued U.S. Investor Interest

Benfica’s corporate structure has continued to attract interest from U.S. investors. Last year, Lenore Sports Partners acquired a stake of more than 5% in Benfica SAD, including shares previously held by former club president Luís Filipe Vieira.

Sport Lisboa e Benfica remains the majority shareholder, holding 66.98% of Benfica SAD.

Benfica shares closed Tuesday at €7.20, giving the company a market capitalization of approximately €161 million.