Eagle Football Group, the owner of Olympique Lyonnais, is facing financial strain due to a significant transfer deficit and a decrease in domestic media rights revenues. As a result, the group has announced that it may have to consider job cuts within the organization.
According to a statement released by the group, the club had the opportunity to sell players during the transfer period but fell short of its targets. This was mainly due to certain players choosing to remain with Olympique Lyonnais. As a result, the total value of player contracts sold during the transfer period was approximately 39 million euros, while the club spent around 145 million euros on player acquisitions and loans since June.
In an effort to stabilize its finances, Eagle Football Holdings, the parent company of Olympique Lyonnais, is expected to provide EFG with working capital of around 40 million euros in the coming weeks. This infusion of capital will be in addition to contributions from the sale of its stake in Crystal Palace and the launch of a formal IPO process on the New York Stock Exchange.
Last month, reports emerged that Lyon had placed the majority of its squad on the transfer market in an attempt to raise 75 million euros to balance its budget and meet financial targets. These measures reflect the club’s commitment to addressing its financial challenges and ensuring its long-term sustainability.
The potential job cuts at Olympique Lyonnais highlight the broader impact of financial difficulties in the world of football. As clubs navigate the economic fallout of the COVID-19 pandemic and other financial pressures, tough decisions may need to be made to secure their financial viability.
It is essential for clubs to strike a balance between financial stability and on-field success. By making strategic decisions around player transfers, acquisitions, and operational costs, clubs like Olympique Lyonnais can position themselves for a sustainable future in the competitive world of professional football.