Ligue 1 – Before its visit to the DNCG: OL mired in multi-ownership with almost 500 million in debt

A wind of worry is blowing through the ranks of Lyon supporters. The reason? The publication of Eagle Football Group’s accounts (formerly OL Groupe)the parent company of Olympique Lyonnais, last week. With within these, net cash debt which increased from 404.4 to 463.8 million euros. And a sentence at the very end of the OL press release which sows doubt. “The group’s auditors are considering issuing an impossibility of certifying on the corporate and consolidated accounts of Eagle Football Group“Enough to question the financial health of the Lyon club but also its place at the heart of Eagle Football, John Textor’s holding company.

While the DNCG will look into this matter on Friday according to L’Equipe and the American multimillionaire will still have to convince the financial policeman of French football, OL still seems very feverish with alarming financial health. “There is not enough revenue and equity. (…) When we look at the balance sheet, there are difficulties at both the income statement level and the balance sheet level. For the latter, we can clearly see that the equity is very low. And therefore, debt is significantly higher than assets. I think this is what raises questions for the DNCG. That is to say, it is the solvency risksays Luc Arrondel, researcher at the CNRS and specialist in the economics of football. Moreover, if the auditors have not certified the accounts, that means that there are uncertainties regarding the survival of the company.”

John Textor during a press conference with Lyon

Credit: Imago

Surprising having sold so many assets

Uncertainties which obviously make any lover of the Rhone institution tremble. But at present, Lyon, where a social plan targeting 90 departures is being studied, does not seem to be in the situation of the Girondins de Bordeaux, who filed for bankruptcy last July. But the risk of being sanctioned by the DNCG is very real. “You really need to have precise access to the accounts (editor’s note: to analyze all this and get an idea). However, there are different degrees in the DNCG measurements (if the guarantees provided do not reassure the authority). You may be prohibited from recruiting, have your payroll regulated or be administratively relegated. But for this last sanction, we are not there even if I repeat it: we should have access to the accounts in more depth.“, estimates Luc Arrondel.

However, one impression remains: that OL are not necessarily winning at the moment in the Eagle galaxy, which also owns Botafogo, Molenbeek or even 45% of Crystal Palace. “When you sell part of your assets as Lyon did with OL Women, OL Reign (editor’s note: in March 2024 for 54 million) or the LDLC Arena (editor’s note: in June, estimated at 160 million), This is partly to repay part of your debts. And there, visibly, the debt has increasedis surprised by the researcher specializing in the economics of football and timeshares. CIt’s surprising, having sold so many things, that we still have such low equity. And such a significant debt. (…) And it is true that we ask ourselves the question of why it was not Lyon which benefited. (…) There are movements taking place between the holding company and the Eagle Football Group (ex : OL Group) which can also explain part of the debt. Because perhaps some of the funds that were supposed to go to the Eagle Football Group have gone elsewhere.”

Lyon parted with some of its war treasures amassed under the governance of Jean-Michel Aulas in particular. Without visibly taking full advantage of it. But this is also the lot of the training involved in a timeshare. Certain financial efforts do not necessarily end up 100% in your club’s coffers but can serve the parent company for other purposes.

And if John Textor promised to bring in cash thanks to the sale of his shares in Crystal Palace or even with the entry on the New York Stock Exchange at the start of the year of Eagle Group (“But it will not necessarily only be for the benefit of Olympique Lyonnais. Since in this portfolio, there are also the other clubs of the group“, recalls Luc Arrondel), one thing seems established today: Lyon will still have to make sacrifices by selling its players. And not the least, which will surely not help it in its quest to qualify for the lucrative League of champions whose money would not be too much to help the club’s accountants…