Olympique Lyonnais, the French Ligue 1 club, is facing a challenging financial situation and is exploring potential job cuts. The decision comes after the club encountered a significant transfer deficit and a decrease in domestic media rights revenues.
To navigate this financial landscape, Eagle Football Group (EFG), the owner of Olympique Lyonnais, announced on Monday that it will engage in discussions with employee representatives to consider potential job reductions. This move follows a period of significant transfer activity that fell short of the club’s targets.
The group explained in a statement that while numerous opportunities arose to sell players during the summer transfer window, the desired results were not achieved. This was attributed to the decision of certain players to remain with Olympique Lyonnais.
In addition to the potential job cuts, Olympique Lyonnais’s parent company, Eagle Football Holdings (EFH), is expected to provide EFG with a substantial injection of working capital, estimated at around 40 million euros, within the coming weeks. This financial support is further bolstered by capital contributions generated from the sale of EFH’s stake in Crystal Palace and the initiation of a formal initial public offering (IPO) process on the New York Stock Exchange.
During the recent transfer period, Olympique Lyonnais managed to secure approximately 39 million euros from player sales. However, the club spent significantly more, allocating about 145 million euros on player acquisitions and loans since June. This spending surpassed that of any other team in France.
Last month, the French newspaper L’Equipe reported that Lyon had placed a majority of its squad on the transfer market, aiming to generate 75 million euros to stabilize its budget and meet its financial sales targets. The club’s current financial challenges highlight the competitive landscape of professional football and the significant financial pressures that teams face in maintaining a competitive edge.
