Following Lyon's shocking relegation to Ligue 2, John Textor's back is against the wall with investors set to take stringent actions against him.
Article continues below
Article continues below
Article continues below
Lyon relegated to Ligue 2 due to financial debtTextor under immense scrutinyCould be forced out of the French clubFollow GOAL on WhatsApp! 🟢📱WHAT HAPPENED?
On Tuesday, French club Lyon were abruptly relegated to Ligue 2 following a decision by financial watchdogs National Management Control Directorate (DNCG). On Wednesday, as fans struggled to comprehend the magnitude of the shock, the club's financial backroom was already in turmoil. At the heart of the storm is American owner Textor, whose future at the helm of Eagle Football seems more uncertain than ever. Cornered by colossal debt and pressure from his lenders, notably the investment fund ARES Management, Textor could well be the next victim of a financial coup that is quietly brewing.
AdvertisementAFPTHE BIGGER PICTURE
Under pressure from the public and facing insistent calls from his co-shareholders and creditors, the president of Lyon made numerous phone calls in an attempt to salvage what he could. According to , aware that his own voice is no longer heard in France and in the face of the authorities, Textor is already considering stepping aside. He is said to be actively seeking a less divisive figure, such as Michele Kang (majority owner of women's team OL Lyonnes) or Michael Gerlinger (current director of football at Eagle), to lead the appeal and calm a climate that has become explosive. Is this a manoeuvre to buy time or the beginning of a forced abdication?
AFPTELL ME MORE
To understand how fragile Textor's position is, we need to look at Eagle Football's financial structure. The American fund ARES Management lent around €425 million (£363m/$498m) for the takeover of Lyon, with interest rates ranging from 11% to 16%. This is a colossal debt, and every missed payment or devaluation of the club increases ARES' leverage. The €210m from the recent sale of Textor's stake in Crystal Palace (43%) will not fundamentally change the situation. These assets were fully pledged to ARES, which also imposed the sale. Per , only €40m of this sum will actually be earmarked for Lyon's short-term operations, with the rest going directly into the lender's coffers.
DID YOU KNOW?
The DNCG is reportedly demanding a cash injection of at least €70m before the appeal hearing, scheduled for July 15. If Textor is unable to raise this sum, ARES could position itself as the providential saviour. By advancing the necessary funds, the creditor would obtain considerably greater oversight of the club's management, and even the possibility of activating takeover clauses typical of this type of high-risk financing. Textor would then be marginalised, a mere shareholder with no real power. There is even talk of a return for Laurent Prud'homme, the club's former CEO, who has maintained ties with ARES.
