In an interview with L'Équipe, Jean-Marc Mickeler, president of the National Directorate of Management Control (DNCG), paints a worrying picture of the financial situation of French clubs. As losses continue to accumulate and future revenues dwindle, he warns of the need to reform an economic model that he considers obsolete.
The financial situation of French clubs as of June 30, 2024 remains critical, with a net loss estimated at 250 million euros. This figure, resulting from an operating deficit of one billion euros partially offset by 830 million euros in capital gains on player transfers, reflects a worrying reality.
For the current season, clubs must deal with the reduction in income from the CVC fund, which goes from 550 million euros in 2023-2024 to only 136 million euros. The drop in domestic television rights worsens the situation: a decrease of 11% over five years, partially offset by the 30% increase in UEFA rights. However, Mickeler recalls that clubs will have to honor the payment of exceptional dividends to CVC between 2024 and 2027, bringing additional pressure on their finances.
Payroll and transfers: risky choices
One of the main points of friction remains the payroll, considered disproportionate to income. In France, the payroll/income ratio reaches 67%, well above the European average (53%). This situation results, according to Mickeler, from overly optimistic assumptions by clubs, which were banking on continued growth in TV rights and the transfer market.
Concerning the latter, the Lassana Diarra ruling – imposing a training allowance even for intra-European transfers – risks slowing down the massive capital gains made in recent years. Mickeler predicts an impact on the ability of clubs to sell their best players for high amounts: “We cannot yet measure all the consequences, but there will be a natural movement for the best players to complete their contracts. It is not quantifiable, but it will make it more difficult to generate very large amounts of capital gains.”
The DNCG understood Textor but did not follow his reasoning!
Asked about the conservatory demotion of Olympique Lyonnais (OL) to Ligue 2, Mickeler refutes the criticisms of John Textor, president of the club. “The DNCG has perfectly understood its economic model, but requires bank guarantees or cash to cover the risks of non-execution of the budget” he explains. Textor is banking on the listing of Eagle Group and the sale of Crystal Palace to improve OL's financial situation, but the DNCG is awaiting concrete results before lifting this demotion.
Mickeler insists: “If Textor had come with these guarantees, OL would not have been demoted.” He emphasizes that this decision is not a sanction, but a warning to guarantee the long-term viability of the club.
Jean-Marc Mickeler announces the end of a system…
For Mickeler, the current situation of French clubs is not isolated. Financial difficulties also affect leagues like the Premier League, Serie A and La Liga. However, France has disadvantages: weak domestic rights, an excessive wage bill and a limited capacity to generate additional income.
Faced with these problems, he calls for urgent measures, in particular the reduction of payrolls. He cites the example of Stade Brestois, a club which demonstrates that sporting performance does not depend solely on financial means.
Jean-Marc Mickeler concludes bluntly: “The economic model as it existed is dead.” This sentence sums up the need for clubs to rethink their financial strategies in the context of an overall slowdown in football revenues. According to him, the future will depend on the ability of French football players to recognize these challenges and act accordingly.
