In a stark revelation on March 31, 2025, Eagle Football Group, the parent company of Olympique Lyonnais (OL), released its semiannual financial report, shedding light on the club's precarious financial situation. The report indicates that OL is grappling with a significant deficit, reporting a net result of -117 million euros, a staggering figure that underscores the ongoing struggles of the historic French club.
As the club continues to navigate through financial turbulence, the report also outlines a proposed "plan d'exploitation et de capitalisation" (operational and capitalization plan) aimed at stabilizing OL's finances. This plan includes two main components: a maximum contribution of 150 million euros from Eagle Football Holdings as part of its upcoming IPO on the New York Stock Exchange, and additional cash contributions from Eagle Football Holdings and its shareholders.
However, the report does not shy away from acknowledging the uncertainty surrounding these financial strategies. The auditors have raised concerns regarding the "incertitude significative" (significant uncertainty) that could threaten the company's ability to continue operating. They warned that any significant delay or failure to realize these cash flows could jeopardize the club's "continuité d'exploitation" (going concern), which is essential for its survival.
OL's financial woes are not new, as the club has been in the red for some time. The recent figures indicate a troubling trend, with net financial debt rising from 463 million euros six months ago to a staggering 540 million euros. This increase is compounded by a halving of cash flow, which has dropped to just 50 million euros as of December 31, 2024. The precarious state of OL's finances raises questions about its future, especially with the looming threat of administrative relegation to Ligue 2 by the DNCG (the financial watchdog) if the situation does not improve.
According to the report, the first half of 2025 is crucial for OL. The club must not only improve its financial standing but also achieve sporting success to meet the demands of the operational plan. The urgency is palpable, as the club has little time to rectify its financial missteps while also striving for a successful campaign in Ligue 1.
In an attempt to paint a more favorable picture, the group maintains that it is probable that some or all of the financing operations and new commitments to lenders will come to fruition. However, the auditors remain skeptical, emphasizing that the assurance regarding the absence of significant anomalies in the accounts is moderate, given the limited scope of their examination compared to a full audit.
The upcoming months will be critical for OL, as the club faces a potential reckoning with the DNCG. The financial watchdog has previously issued a precautionary administrative relegation to Ligue 2 in January 2025, which hangs over the club like a dark cloud. The financial report serves as a wake-up call, highlighting the urgent need for effective management and strategic planning to avoid further penalties.
OL's history is rich, and its supporters are passionate, but the current financial landscape poses a significant challenge. The club's management, led by John Textor, must navigate these turbulent waters with careful planning and execution. The reliance on the success of the IPO and additional cash contributions speaks to the fragility of OL's economic model.
As the clock ticks down to the end of the first semester, OL's management is under immense pressure to deliver results both on and off the pitch. The club's ability to secure a place in the Champions League is not just a matter of prestige but a financial necessity that could help alleviate some of the burdens currently weighing down the organization.
In conclusion, the future of Olympique Lyonnais hangs in the balance as it grapples with significant financial challenges. The semiannual report from Eagle Football Group serves as both a warning and a call to action, emphasizing the need for immediate and effective measures to secure the club's financial stability and ensure its continued operation in the competitive world of football.
