Lyon’s crisis is not the result of chance, but the result of management choices that turned out to be disastrous. For 35 years he was the father-master of Lyon Jean-Michel Classesa man of great charisma who had taken over him in the second division, leading him to dominate the French scene and win seven consecutive Ligue 1 titles – between 2002 and 2009 – and building the strongest women’s team in Europe, winner of eight European titles. Even in the Aulas management there was no shortage of crises: after the glories of the golden decade, the club had slipped into a deep crisis crushed by huge losses, but the owner had been able to find the way out by building a modern stadium, open to large events, diversifying revenues but above all taking the path of sustainability. No more expensive purchases, but investments in young people and in the ability to enhance them, even economically. For years Aulas fought an unequal war against PSG supported by Qatar, but remained convinced that a football club should be managed like any other business, capable of generating the resources with which to finance growth and be competitive.
LYON AT RISK OF REFERENCE AT THE END OF THE SEASON
The virtuous path was interrupted: Aulas sold to the American Textor but it cannot be said that the problems were not already brewing. In the last four years Lyon has achieved 300 million lossesdespite very respectable revenues: 276 million in 2022/23 without player trading from which it earned 332 million in four years. This wasn’t enough. The cost of the rose is very high (156 million, double the most virtuous years of Aulas management) but above all the financial management pays the price for very risky investments. Precisely in the midst of an ordinary management crisis, the club embarked on real estate investments of dubious consistency such as the construction of the Arena, a covered facility intended for the management of events and financed entirely by debt. The attempt to reconvert the club into an entertainment group, already under the management of Aulas, has significantly burdened the finances by draining resources that the shareholder has not so far been able to contribute.
The situation is delicate because Textor’s ability to cover in good time a avoid relegation (precautionary measure by the French regulators, to avoid worse damage) depends on difficult conditions: the sale, for 40 million, of a share in Crystal Palace with minority voting rights, the listing of the group on the stock exchange, i.e. the attempt to find resources on the market in a moment of serious asphyxiation. The Lyon affair must teach us some things. First of all, the management of a club (like any company) must at least aim for economic balance, a condition for medium-term survival. Second: in finance, debt is always a cumbersome burden that exposes us to operational risks and takes away flexibility from company choices. Third: the false myth of real estate investments must be treated with great caution, taking on debt to burden the balance sheet of real estate assets makes sense if these make a contribution to improving operational management. Otherwise, a light budget is better. Fourth: the debt is manageable if the maturities are long but if a significant portion of it becomes collectable – as in the case of Lyon in the last year – the cash drain requires capital contributions that the shareholder is not always able to realize quickly.
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**PAA: To Guest 1:** While Lyon enjoyed success under Aulas, their recent performance decline coincides with escalating player wages. Did Lyon’s ambition to compete with PSG financially, rather than strategically, ultimately contribute to the club’s current crisis?
## World Today News Interview: The Lyon Crisis
**Welcome to World Today News, and thanks for joining us today. We’re discussing the precarious financial situation facing Olympique Lyonnais, a club with a rich history of success. To help us understand the complexities of this situation, we’re joined by two distinguished guests:**
* **[Guest 1 Name & Affiliation], a renowned Football Finance Expert**,
* **[Guest 2 Name & Affiliation], a Sports Management Professor with a focus on Club Sustainability.**
**Section 1: From Glory to Crisis – Understanding Lyon’s Trajectory**
* **[Opening Question to both guests]:** Olympique Lyonnais enjoyed a dominant period under Jean-Michel Aulas, winning seven consecutive Ligue 1 titles. However, the club now faces a potential relegation and financial distress. In your view, what factors contributed to this dramatic shift in fortunes? What key decisions, strategic or otherwise, might have set Lyon on this path?
* **[Directed Questions]:**
* **To Guest 1:** How does Lyon’s spending on players compare to other top clubs in Ligue 1, and did this spending contribute to the current financial strain?
* **To Guest 2:** The article mentions Aulas’ successful diversification strategy of the club. How effective were these initiatives in the long run, and could they have been further optimized?
**Section 2: The Textor Era – Mounting Debt and Risky Ventures**
* **[Opening Question to both guests]:** Following Aulas’ departure, John Textor took over the club. The article highlights significant real estate investments and a reliance on debt financing. What are your thoughts on Textor’s approach to managing the club, and how did these decisions impact Lyon’s financial stability?
* **[Directed Questions]:**
* **To Guest 1:** What are the inherent risks associated with financing a football club heavily through debt, especially for ventures like a new arena whose primary revenue stream isn’t directly tied to the club’s performance?
* **To Guest 2:** The article mentions the planned listing of Textor’s group on the stock exchange. Do you see this as a viable solution to Lyon’s financial woes, and what potential pitfalls should be considered?
**Section 3: Lessons Learned – A Call for Sustainable Football Management**
* **[Opening Question to both guests]:** The Lyon case presents a cautionary tale about financial mismanagement in football. What key lessons can be drawn from this situation for other clubs, particularly regarding responsible investment, debt management, and long-term sustainability?
* **[Directed Questions]:**
* **To Guest 1:** What safeguards can be implemented by governing bodies like UEFA to prevent similar financial crises from occurring at other clubs, while still allowing for investment and growth?
* **To Guest 2:** What role can fan engagement and ownership models play in promoting responsible and transparent financial management within football clubs?
**[Closing Remarks]:**
This has been a fascinating and crucial discussion. Thank you, [Guest 1] and [Guest 2], for sharing your expertise and insights. The fate of Olympique Lyonnais hangs in the balance, but their story serves as a valuable reminder of the importance of financial prudence and sustainable practices in the world of football.
**We’ll continue to follow this developing story and bring you further updates. Stay tuned to WorldTodayNews.**
