Ewhat if after the Girondins de Bordeaux, another major French club suddenly went under? If Olympique Lyonnais is not there yet, the sinister scenario is no longer a taboo. Since the passing of the torch from Jean-Michel Aulas to John Textor in June 2022, OL’s financial situation has deteriorated and inevitably raised concerns. The mid-season passage this Friday before the DNCG, the financial policeman of French football, is already a turning point for the American owner. A simple warning? A slap on the wrist? The sanctions could be much more severe for the Rhone club.
“Textor was unable to fulfill the financial and stock market obligations to Aulas”
Like all professional French clubs, Olympique Lyonnais has suffered the full brunt of the dizzying fall in TV rights for Ligue 1. In addition to this precious missing resource, OL must show its credentials and guarantee the provision of a sum exceeding 100 million euros to show his stability in the elite. As a result, key players in Pierre Sage’s squad like Rayan Cherki or Malick Fofana could be sold urgently this winter, while Lyon wants to return to the Champions League after four years of absence.
The Eagle Group share (formerly OL Groupe) continues to fall calmly.
From €2.29 on October 18, we fell to €2.06 today.
As a reminder, the lowest level this year was at 1.99 at the start of the year (and in June). pic.twitter.com/TouaVACklK
— Charly M. (@SeriousCharly) November 12, 2024
David Gluzman, banker specializing in structured financing and football columnist for L’After Foot from RMC, looks back on this alarming context on the OL side. Despite a club that owns its stadium, has an efficient training center and several well-valued assets, John Textor has put itself in the red. “At the time of the sale, there were already worrying signals,” emphasizes David Gluzman. The closing was postponed several times, the acquisition had difficulty completing. John Textor was unable to fulfill the financial and stock market obligations to Jean-Michel Aulas. Then the new owner had to do asset stripping to meet conditions, selling the new Arena and some players. »
How was Jean-Michel Aulas, president of Olympique Lyonnais for 36 years, able to hand over his longtime club to a Textor who was initially unreliable? The American investor especially took advantage of a favorable context to buy the seven-time French champion club. “Aulas was forced to give in, the minority shareholders Pathé and IDG Capital presented him with a fait accompli. Given the amount paid with creditors who were disinterested and shareholders wanting to sell, even a historic president could only sell. » John Textor thus invested nearly 800 million euros to become the main shareholder with a 66.56% stake. The businessman from Missouri now holds 87.8% after a new takeover bid in the summer of 2023.
A turbulent winter transfer window in sight
Almost two years after the takeover and numerous changes in the first team and the organization chart, OL have their accounts in the red. In a press release from Eagle Group, the net debt of the treasury amounts to 463.8 million euros and forces Textor to act with several measures. “Contributions of 75 million euros by the end of December 2024 in the form of equity and/or proceeds from the sale of players held by clubs in the Eagle Football Holdings group. The contribution of a maximum amount of 100 million euros at the start of 2025. The completion of player transfers during the January 2025 transfer window. » By playing with the timeshare in Botafogo, the shares of Crystal Palace and the upcoming executive departures, John Textor wants to save the day.
ALSO READ An invisible Ligue 1 and without an audience: the announced failure of the broadcaster DAZN
To Discover
Kangaroo of the day
Answer
But will the DNCG be lenient in the face of these promises? Nothing is certain as the authority wishes to tighten the screw after several years of leniency. “There is no good solution,” says David Gluzman. They let OL spend tens of millions of euros that they didn’t have. They are obliged to sanction them, to make them an example and to make up for the laxity of the past, but if they penalize them too hard, the DNCG will unbalance them and it will be very difficult to catch up. Nobody will win. »
Caught between a rock and a hard place, Olympique Lyonnais and John Textor are exposed to several sanctions, ranging from payroll control to precautionary relegation, including limited recruitment. Fifth in the Ligue 1 standings after 11 days, OL hope to avoid a disastrous fate that others have experienced recently.
