Questions have emerged over the structure of a high-profile investment linked to the Hexagon Cup international padel tournament, after claims that funding intended to secure equity participation was not formally recorded in the names of the investors who provided the capital.

The matter concerns approximately £1 million invested in late 2023 into the rapidly expanding padel competition, which has attracted public attention through its association with prominent sports and entertainment figures.

An official press release issued by Hexagon Cup at the time announced that Lurra Capital had made a strategic investment in the tournament, presenting the transaction as a vote of confidence in the project’s commercial prospects.

However, lawyers acting for one of the investors say that the legal structure underlying the investment does not reflect how it was publicly described.

According to correspondence reviewed by EU Reporter, the funds were transferred under an investment mandate and presented to investors as an equity-linked transaction. The investors’ legal representatives state that the capital was ultimately recorded in the name of an intermediary, Tyron Birkmeir, rather than in the names of the companies and individuals who provided the funds.

They argue that, as a result, the investors are not formally recognised in the project’s corporate structure and do not hold the ownership, voting, or participation rights typically associated with an equity investment. The lawyers stress that the dispute does not concern whether the funds reached the Hexagon Cup project, but rather who is officially recognised as the investor of record.

The two investors identified by their representatives are Portuguese investor Paul Coelho and Wellington Investments Ltd, a Cyprus-registered company, who together provided the £1 million. The funds were routed via the intermediary, who is said by the investors’ representatives to be listed as the sole recognised investor through Lurra Capital.

In 2025, the investors reportedly contacted Hexagon Cup directly seeking clarification. They say they were informed that they were not listed within the official ownership structure and that only the intermediary was recognised as the investor.

The investors’ representatives further state that the intermediary has since characterised the transaction as a profit participation loan rather than an equity investment. Under such an arrangement, they say, the investors would receive repayment of capital but would not hold shares or participate in any future increase in the project’s value. The representatives add that earlier correspondence referred to the structure as a SAFE (Simple Agreement for Future Equity), a commonly used instrument in early-stage investments, although no court has ruled on how the transaction should be classified.

Legal commentators note that disputes of this nature frequently arise in cross-border investments involving intermediaries and layered corporate structures, particularly where expectations about ownership and control differ from the final legal documentation.

No court has yet ruled on the matter, and the claims remain contested. EU Reporter understands that the issues raised are now being addressed through legal channels.

The dispute has also drawn scrutiny following references in previous media reporting to separate legal proceedings in Luxembourg involving a similar investment structure. There has been no judicial finding establishing wrongdoing in relation to the Hexagon Cup investment.

EU Reporter has contacted the relevant parties for comment. At the time of publication, no responses had been received. This article will be updated if further statements are provided.

Legal notice:
This article reports on an ongoing commercial and legal dispute. All allegations, claims and characterisations are attributed to the parties or their legal representatives unless otherwise stated. No court or regulatory authority has made a finding of liability or wrongdoing in relation to the matters described. The individuals and entities referred to deny any improper conduct. EU Reporter does not take a position on the merits of the dispute and publishes this report in the public interest as part of responsible, balanced journalism.