accounts in the red and a threat of demotion to Ligue 2

The financial situation of Olympique Lyonnais is deteriorating. Despite the optimism of John Textor, owner of the club, the financial policeman of French Football is demanding an adjustment of the accounts, under the threat of a demotion of OL to Ligue 2 next season.

Bad times for Olympique Lyonnais! The threat of demotion to Ligue 2 next season now looms over the club. It is not the sporting results that are in question but the finances of the club, whose debt has reached such a level that the financial policeman of French football (the National Directorate of Management Control) decided this Friday, November 15, 2024 to supervise strict wage bill and a ban on recruitment in the winter transfer market.

The DNCG, which auditioned the club Friday afternoon in Paris, also decided to “demotion as a precautionary measure at the end of the current sporting season” of OL, currently 5th in Ligue 1, according to a press release from the Professional Football League (LFP).

The American John Textor, owner of the club, nevertheless assured just after the hearing that he was not “at all worried about the sustainability“of the company that oversees Olympique Lyonnais.”I am confident in our figures, we will bring in several hundred million cash in the coming months“.

The businessman, who bought OL from Jean-Michel Aulas in 2023, assured that the LFP body had looked at the complete picture of the holding company to which OL now belongs, Eagle Football Holdings , which also owns the clubs Botafogo in Brazil and Molenbeek in Belgium.

Last week, however, the publication of the results accounts plunged supporters into doubt. Despite a reduction in its net losses, Eagle Football Group’s net cash debt reaches 463.8 million euros.

To pay off the debts, the company is counting on cash inflows coming in particular from Botafogo and Molenbeek, but, considering that they do not have sufficient elements to judge the reasonable nature of these hypotheses, the auditors have indicated that they may not certify the accounts.

“The local commissioners only looked at the French football club and did not consider the hundreds of millions of dollars that will come from different parts of our organization” lamented John Textor. “We are not at all worried about our sustainability“.

To reassure Lyon supporters, the American also assured that the club would not give up its best elements because its “goal is to be selected for the Champions League this year. We earn around 90 million euros per year from the sale of players. This will continue but don’t worry, he won’t be your favorite player, the best player, if we don’t have someone to replace him and play even better“.

“I’m confident in our numbers but I’m never confident in how a regulator sees things“, he nevertheless admitted, referring to “pressure from its enemies including a major club linked to Qatar“.

In July 2023, the DNCG had already taken measures to control payroll and transfer compensation. This situation had forced the Rhone club to undertake summer recruitment, carried out on the cheap and, in the end, completely unsuccessful.