LyonS Financial Rollercoaster: Cherki Sale Masks Deepening Deficit, But New Ownership Offers Hope
Lyon, France – The rollercoaster ride of Olympique Lyonnais’ finances continues, with the latest financial report painting a stark picture of a club grappling with significant losses, despite a lucrative player sale. While the departure of young star Rayan Cherki to Manchester City brought in a welcome €31.4 million net before the accounts closed, it wasn’t enough to offset a dramatic plunge in the club’s operating surplus.
For seasoned football fans, the term “financial fair play” frequently enough conjures images of clubs meticulously balancing their books. However, for Lyon, the reality has been far more turbulent. The Rhone club’s gross operating surplus (EBE) has swung from a healthy +€44.2 million in the previous fiscal year to a concerning -€47.7 million. This dramatic shift, as reported by Eagle Football Group, is largely attributed to a significant increase in player payroll and recruitment expenses, a familiar narrative in the high-stakes world of European football.
Think of it like a major league baseball team investing heavily in free agents and draft picks, hoping for a championship run. Lyon,in their pursuit of on-field success,significantly boosted their player costs.”Personnel costs amounted to €177.7 million as of June 30,2025,compared to €161.9 million (for the previous financial year), recording a sharp increase in the sports division in relation to the significant recruitment of players in the summer of 2024,” the Eagle Football Group stated. This aggressive spending, while aiming for glory, has clearly put a strain on the club’s bottom line.
Adding to the financial pressure was the disappearance of financial aid received in the 2023-2024 season. This aid,part of a commercial agreement between the French Professional Football League (LFP) and the CVC fund,represented a one-time boost that Lyon can no longer count on. Furthermore, the previous financial year also benefited from the sale of the LDLC Arena performance hall, a revenue stream that wasn’t replicated in the latest reporting period.
The Balance Sheet blues: Debt Rises, Equity dips
The impact on Lyon’s balance sheet is equally eye-opening. Financial debts have climbed to €517.9 million,up from €505.1 million as of June 30, 2024. More alarmingly, the club’s equity has plummeted from a positive €39.4 million in 2023-2024 to a negative €163.6 million. this negative equity situation is a red flag for any institution, indicating that liabilities exceed assets.It’s akin to a company whose debts are greater than what it owns, a precarious position that can lead to serious consequences.
Though, there’s a glimmer of hope on the horizon. The summer transfer window of 2025 saw a significant reduction in the club’s payroll, a move that is expected to improve EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the current 2025-26 financial year. This strategic trimming of the wage bill is a crucial step in the right direction, mirroring how many American sports franchises manage their salary caps to ensure long-term financial health.
New Ownership and a Fight for Survival
Lyon narrowly avoided a potential administrative relegation to Ligue 2 this past summer.This precarious situation was averted thanks to crucial cash injections and a commitment to adhere to the financial regulations set by French football’s governing bodies.The club also underwent a significant leadership change, with Michele Kang taking the helm from John Textor, signaling a new era for the Rhone club. This transition of ownership and management is a critical factor, as new leadership often brings fresh strategies and a renewed focus on financial stability.
As the winter break approaches, Lyon finds itself in 7th place in Ligue 1, a respectable position, and is currently leading its Europa League group. While the on-field performance offers some solace,the financial challenges remain a significant hurdle.
What’s Next for Lyon?
The club’s ability to navigate these financial waters will be closely watched.The success of the recent payroll adjustments and the continued support from its new ownership will be paramount. For American sports fans, this situation offers a compelling case study in the complex interplay between sporting ambition and financial reality.
Potential Areas for Further examination:
* Impact of Player Sales on Future Recruitment: How will Lyon balance the need for player sales to generate revenue with the desire to retain top talent for on-field success?
* Long-Term Financial Strategy of Michele Kang: What are the specific plans of the new ownership to ensure sustainable financial health for Olympique Lyonnais?
* Comparison with Other European Clubs: How do Lyon’s financial struggles and recovery efforts compare to those of other major European football clubs facing similar challenges
