Staff Writer Grace Holloway looks at the current state of Olympique Lyon, as the historic club is threatened with relegation after financial failings.
On the 15th of November, Olympique Lyon, owed by Eagle Football Holding Ltd, faced severe sanctions due to their financial situation. Following a meeting with the French Financial Watchdog DNCG on Friday, Olympique Lyon was handed both a provisional Ligue 1 relegation as well as a transfer ban. The club currently sits 5th in Ligue 1 as well as 9th in the Europa League.
Initially, the club was aiming to convince the French regulator that they could manage this debt by the sale of players from their partner Brazilian team Botafogo as well as the sale of John Textor’s 45% stake in Crystal Palace. However this proved to be ineffective.
They now face a difficult issue of trying to find £91 Million (€100m) to escape the current punishments. This could force the seven-time Ligue 1 winners, to sell some of their best players in January, such as 21-year old midfielder Rayan Cherki.
Their financial restriction follow the summer announcement from previous Ligue 1 champions Bordeaux. Bordeaux announced they would be surrendering their professional football club status, after a three year financial battle concluded with them in administration and in the 4th tier of French football. Within the French football League, many clubs are struggling to recover from the pandemic period.
Eagle Football Holding LTD, John Textor and the never ending financial issues
Lyon is owned by Eagle Football Holding LTD, a multi-club group who also own Premier League team Crystal Palace, Brazilian side Botafago and Belgium side RWD Molenbeek. Eagle Football Holding LTD is owned by John Textor, an American businessman who acquired the majority shares of Lyon in 2022.
Eagle Football Holding LTD is currently reported to have collective debt of £422 million. Recent reports have seen them seeking to borrow up to $300 million to pay off the debts. Textor’s main combatting tool is to sell his share in Crystal Palace by the end of the year, with reports of at least two credible offers so far.
Despite the financial issues facing the club, Textor’s ambition has seen this ignored, with his attempt earlier this year to buy Everton as well as recent discussions to buy a stake in English Championship team Watford. His aspiration to build a more successful multi-club strategy seems to ignore the rising levels of debt.
The business is attempting to restructure and recapitalise, after listing on the New York Stock Exchange for $100 million of shares in 2025. Combined with the hopeful sale of Crystal Palace shares, this capital could solve the financial instability of the business and allow Lyon to continue their place in Ligue 1 and the Europa League.
What does the situation mean for the wider business model?
To combat the financial issue, Eagle Football Holding LTD may look to sell key players from it’s other teams: Botafago and RWD Molenbeek. While both teams currently sit first in their league’s, the sale of players could be consequential for their future success.
Crystal Palace no longer seems an attractive club to contain in the model, as Textor has shown a clear interest in both the sale of his 45% share and investment into a new English team.
In recent years the ownership structure of Crystal Palace has come under fire from fans, with various campaigns opposing the ownership, following an apparent lack of ambition and success. Through their current 10-year stint in the Premier League, they only finished in the top 10 once.
Textor has been a target of this criticism, as many fans look to rejoice in the idea of him selling his share. Fans have publicly opposed his multi-club ownership model, based on the risk of floating his 45% share of Crystal Palace on the Stock Exchange.
No offer has been fully disclosed, but there is hope among the fan-base for a new passionate owner who understands the rich history of the club, as well as providing the financial backing the club needs to really take it to ‘the next level’ that has been promised.
The next steps in the sale of the 45% share in Crystal Palace is crucial for Lyon and the wider model. The finance raised could prevent the sale of key players across the teams, however with Textor’s risky ambitions it is uncertain if he would use this sale to invest into another English Club as speculated earlier this year.
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