Jean-Michel Aulas, the former president of Olympique Lyon, has declined to return to the club amid its financial turmoil, with debts nearing 500 million euros and potential relegation looming. Aulas, who transformed Lyon into a successful club, faces a challenging landscape following his exit and the sale to US investor John Textor. The financial situation worsened with reduced television rights and asset sales, raising concerns for fans about the club’s future and potential player departures.
Jean-Michel Aulas Declines Return to Olympique Lyon
Jean-Michel Aulas, the venerable 75-year-old former president, has firmly stated that he does not wish to reclaim a prominent role at Olympique Lyon. This decision comes at a critical time when the seven-time champions face provisional relegation due to a ruling from the French football financial authority DNCG, with debts reportedly around 500 million euros. If the club fails to turn its fortunes around by the season’s end, they could find themselves competing in Ligue 2 next season.
From Model Club to Financial Struggles
Aulas began his journey with Olympique Lyon in the second division back in 1987 and transformed the club into a beacon of success in France’s second-largest city. Since their promotion in 1989, Lyon has not experienced relegation, achieving an impressive streak of seven consecutive championships from 2001 to 2008. The club became known for developing stars like Karim Benzema and dominating women’s football, winning the Champions League a record eight times. Aulas also made history by taking OL public, creating a diversified empire that included a travel agency, hotels, and more, making it one of the wealthiest clubs in Europe.
However, the situation has deteriorated since Aulas sold the majority stake to US investor John Textor in 2022 and subsequently stepped down as president in 2023. The club has faced significant challenges, especially with the rise of Qatari investments at Paris Saint-Germain. While OL reached the Champions League semifinals in 2020, they haven’t returned to the competition since. The financial landscape has become increasingly dire, with a projected deficit of 109 million euros in the player market by summer 2024.
The current state of Ligue 1 compounds these challenges, as the league struggles to secure lucrative television rights. Instead of the anticipated one billion euros, the rights were sold for just half that amount. The reduction of clubs from 20 to 18 did little to enhance the league’s appeal or stability, and the financial injection from selling shares to private equity firm CVC has not proven sufficient. License withdrawals have become common, with clubs like FC Sochaux and Girondins Bordeaux facing relegation, illustrating the precarious nature of French football.
As wealthy investors from Paris, Monaco, and Nice continue to pour funds into their clubs, Textor’s Eagle Football Holding has yet to demonstrate a similar commitment. The decision to offload valuable assets, including the majority of the women’s team, raises concerns among fans. The once-prominent women’s team, which reached the Champions League finals, has now been absorbed by Kysnica Sports, a group with global football interests. Additionally, OL Reign, a team acquired in 2019, was sold again in 2023.
Textor’s portfolio also includes Botafogo from Rio de Janeiro, Belgian club RWD Molenbeek, and a 45 percent stake in Premier League’s Crystal Palace. He has hinted at selling his shares in Crystal Palace to focus on acquiring a majority stake in another English club. During discussions with the DNCG, he presented these shares as collateral for OL’s debts, but the financial authority remained unconvinced and threatened to withdraw the club’s license.
In a recent press conference, Textor claimed that the auditors do not appreciate the synergies within his club network and suggested that selling stars from Botafogo could generate crucial revenue. The club is on the verge of clinching the Brazilian championship and advancing in the Copa Libertadores, akin to the Champions League.
Textor also indicated that his firm could raise around 200 million euros from the Crystal Palace shares and another 100 million dollars through a potential IPO on the New York Stock Exchange. He reassured OL fans, stating, “Let it be clear: this club will not be relegated.” However, he acknowledged that player sales would be necessary in the winter to secure a license, putting popular talents like Rayan Cherki, Malick Fofana, and Georges Mikautadze at risk of leaving the club soon.
Currently sitting fifth in the league table, Olympique Lyon’s path back to its glory days appears increasingly distant, leaving fans anxious about the club’s future.