Eagle Football Group, the umbrella company for Olympique Lyonnais, published mixed annual results with a reduction in net losses but “hypotheses” of cash receipts which remain to be confirmed.
The auditors also considered that they did not have sufficient information to judge the character ” reasonable “ of these forecasts and may not certify the accounts, according to a press release published Wednesday, November 6.
A net loss of more than 25 million euros
The group recorded a net loss of 25.7 million euros for the financial year ending June 30, 2024, compared to 99 million a year earlier, according to this press release. Turnover increased by 25% to 361.4 million euros.
The gross operating surplus is now positive at 44.2 million, compared to -1.8 million last year, thanks in particular to licensing agreements concluded with OL femmes and strong event activity (concerts, shows , MMA meetings… in the Groupama Stadium).
But the group’s net cash debt stands at 463.8 million euros, compared to 404.3 million euros as of June 30, 2023.
The board of directors decided at the end of October to postpone the publication of the results “pending the finalization of audit work”. The accounts were finally settled on the basis of several “hypotheses”according to the press release.
An agreement of maximum 40 million euros to be expected
These provide for a contribution 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 parent company headed by American businessman John Textor, which took control of OL in December 2023, also owns the clubs Botofogo in Brazil and Molenbeek in Belgium, which would therefore be involved.
The group is also banking on a contribution “of a maximum amount of 40 million euros” from the planned sale of Eagle Football Holdings’ shares in the Crystal Palace club (England), or up to 100 million euros, as part of the company’s planned listing on the New York Stock Exchange -mother.
Eagle Football Group is also counting on the sale of players during the January 2025 transfer window. But OL, currently sixth in the Ligue 1 standings, must not get rid of its best players to qualify for the Champions League and benefit from the related TV rights.
Over the 2023-2024 financial year, capital gains on transfers of player contracts are « quasi-stables » at 75.9 million euros. As of June 30, the market value of the professional squad is estimated at 236.3 million euros by OL, with a level of potential capital gains estimated at 106.5 million.
In its press release, Eagle Football Group judges “probable that all or part” financing operations envisaged “are brought to fruition” but recognizes that “any significant delay or non-realization of these cash flows could call into question the principle of continuity of operation of the company and its subsidiaries”.
“The group’s auditors are considering issuing an impossibility of certifying on the accounts”because they believe that the audit work “did not allow them to collect sufficient evidence to rule on the reasonableness of the different hypotheses”it is specified.
In September, EFG announced “a cost rationalization plan” and opening discussions with staff representatives “could possibly lead to a voluntary departure plan” among its approximately 600 employees.
READ ALSO. John Textor still wants to buy an English club
In June, the American John Textor sold the LDLC Arena, a multi-function hall located near Groupama Stadium, to the family holding company of his predecessor Jean-Michel Aulas, but also sold the OL women’s team with the aim of refocusing activities towards men’s football and to reduce debts.
