Olympique Lyonnais, a well-known football club, is facing some serious financial challenges that have raised concerns about the possibility of relegation to Ligue 2. A recent report by journalist Romain Molina has highlighted the club’s financial situation, suggesting that the DNCG, French football’s financial watchdog, could consider administratively relegating Lyon. However, Molina also acknowledges that such drastic measures are unlikely to be taken, as they would only happen in a “normal world.”
Lyon’s financial troubles stem from their economic model, which heavily relies on consistent Champions League qualification. With the club experiencing poor sporting results over the past five years, their revenue has been impacted significantly. Additionally, Lyon’s wage bill, one of the highest in Ligue 1, has been deemed excessive. Players like Jordan Veretout and Anthony Lopes are reportedly earning substantial salaries, with some older players sitting in the reserves with high wages.
Eagle Group, the club’s owners, recently reported a net loss of approximately €25 million, despite selling off assets such as the women’s team and OL Reign. The club’s financial debt has also increased from €458 million to €508 million, according to Le Progrès. These financial struggles have prompted speculation about potential player departures from Lyon during the upcoming winter transfer window.
Journalist Romain Molina suggests that Lyon may be forced to hold a fire sale, putting all players on the transfer market. This prediction aligns with the club’s recent decision to sell academy graduate Mamadou Sarr to RC Strasbourg Alsace for a relatively low fee of €10 million. The departure of promising young talents like Sarr could indicate a larger trend of player exits from Lyon as they attempt to address their financial difficulties.
The situation at Lyon serves as a cautionary tale for other football clubs that heavily rely on tournament earnings to sustain their financial health. The challenges faced by Lyon underscore the importance of maintaining a balanced financial structure and not overspending on player salaries. As the club navigates these uncertain times, fans and stakeholders will be closely watching how Lyon’s management addresses their financial woes and whether they can avoid the threat of relegation to Ligue 2.