Club proprietor Textor to relinquish managerial duties for Lyon following demotion to Ligue 2
Olympique Lyonnais, a renowned French football club, faces administrative relegation to Ligue 2 for the 2025–26 season, following a ruling by the DNCG (French financial watchdog) due to an estimated €175 million debt. The decision comes after American businessman John Textor, president of Eagle Football and owner of the club since late 2022, took over a team that was already in a relegation squad.
Textor's acquisition of Lyon involved leveraged financing, with approximately €405 million borrowed from an investment fund. His business model treats football as a commercial enterprise, heavily reliant on revenues from European competitions such as the Champions League. However, Lyon's failure to qualify for this tournament significantly worsened the club's financial standing, pushing it into a debt trap with limited short-term options to repay the loans.
Despite Textor's attempts to inject equity and improve liquidity, including increased cash resources and consecutive years of European competition, the DNCG did not acknowledge these as sufficient guarantees. This situation reflects a broader skepticism about the club's long-term financial sustainability under the current ownership and management structures.
In light of the financial crisis, Textor has agreed to sell his 43 percent stake in English Premier League club Crystal Palace to New York Jets owner Woody Johnson for £190 million ($255 million). Despite his efforts to reduce Lyon's debts and solve their problems, Textor admits that his efforts have not been enough to convince the DNCG. As a result, he plans to let others take charge of Lyon's appeal against relegation.
Textor's management has been criticized for poor financial planning and risky decisions, prompting the involvement of external or new representatives to strengthen Lyon’s appeal case before the DNCG. Textor compares himself to a coach who would fire a coach with a bad tactical plan five times in a row, implying his dissatisfaction with his performance at the DNCG.
Amid the crisis, Textor maintains that there is no solvency or sustainability issue with Lyon. He also expresses pride in the club's on-pitch success, with Lyon finishing sixth in Ligue 1 for the season just ended, qualifying for Europe. Lyon has reached an agreement with UEFA to play in next season's Europa League, contingent on a successful appeal against relegation.
In a statement, Textor described the situation as an "odd world," reflecting his frustration with the current circumstances. He also mentions that he has partners who will take the lead in this process. The outcome of Lyon's appeal against relegation is eagerly awaited, with potential implications for the future of the club and French football as a whole.
- Despite Textor's attempt to sell his stake in Crystal Palace to address Lyon's financial crisis, it seems the United Kingdom's financial industry may play a role in the French club's future, as the DNCG remains skeptical about its long-term financial sustainability.
- The financial struggles of Olympique Lyonnais have extended to the world of sports business, with Textor admitting that his attempts to reduce debts and salvage the club have not been successful enough in the eyes of the DNCG.
- As Lyon anticipates an appeal against relegation, there appears to be a shift in European leagues, with the involvement of outside investors and the potential impact on the future of the club and French football overall.
