Kang cuts Lyon losses as Eagle debts and disputes weigh heavily
Lyon have sharply reduced operating losses under Michele Kang, but an €87.3m annual deficit, deeply negative equity and continuing disputes linked to their former ownership underline the scale of the financial recovery still required.
Olympique Lyonnais have reduced personnel costs by 36% and brought EBITDA close to break-even under Michele Kang’s leadership, although their latest accounts show an €87.3m loss attributable to shareholders and negative equity of €248.3m.The results for the year ending June 30, 2026 combine substantial operating savings with a restructuring of liabilities to former ownership affiliates, while revenue declined and provisions against outstanding receivables weighed on the accounts.OL Groupe said: “The Board noted the strong improvement in the Company’s financial position, thanks to the strategy implemented by the new management, which has borne fruit and made it possible to sharply reduce operating expenses while meeting the sporting objectives.”Kang’s investment vehicle Olympe Bidco acquired an 87.78% stake for US$30m in June, following the administration of former majority shareholder Eagle Football Holdings Bidco.The transaction accompanied the renegotiation of senior debt, the extinguishment of approximately €242.2m owed to Eagle Bidco and affiliates on a consolidated basis, and a new shareholder loan facility of up to €71m.Of that facility, €31m had been drawn by the financial year-end, with the remaining €40m covered by a J.P. Morgan guarantee until June 2027.The restructuring followed earlier support that helped overturn Lyon’s administrative relegation in July 2025, including an €87.3m shareholder loan from Eagle Bidco and a €30m bank guarantee counter-guaranteed by Kang.Management said its objective is “restoring Olympique Lyonnais’s financial health and building a club capable of targeting regular European qualification and, in the medium term, regular Champions League qualification”.Personnel expenditure fell from €177.7m to €114.5m, its lowest level since 2017/18, while purchases and external expenses declined 20% to €76.6m.Those reductions helped narrow the EBITDA deficit from €47.7m to €4.7m despite a deterioration in income.Total revenue, including player registration sales, fell 19% to €222.3m. Revenue excluding player trading declined 12% to €143.3m, while transfer proceeds dropped from €111.1m to €79m.Ticketing increased 5% to €45m, but media and marketing rights, sponsorship and events income all declined, with events revenue falling 58% to €7.9m.The bottom line also reflects substantial accounting adjustments linked to the former ownership network.Lyon recorded €205.1m in impairments against receivables involving Botafogo, Eagle Bidco and Eagle Football Holdings LLC, alongside the separate benefit from extinguishing affiliate debts.The debt release therefore should not be read as recurring operating income, while the impairments reflect reduced expectations of recovering amounts previously recorded as assets.Financial debt fell from €517.9m to €409.8m, but cash declined to €45.4m and negative equity deepened from €163.6m to €248.3m.Legal disputes remain another significant issue.Following an independent review of transactions undertaken between May 2023 and June 2025, OL Groupe and subsidiary OL SASU filed a criminal complaint against persons unknown concerning suspected financial misconduct. The complaint does not establish criminal wrongdoing.The group also faces claims connected with Botafogo transactions and proceedings brought by John Textor, including a €20.9m claim in Lyon and a separate New York reimbursement action concerning €14.4m plus interest.Responding to the latter, the company said: “Olympique Lyonnais disputes owing any amount whatsoever to this factoring company, let alone to Mr Textor.”It added: “The Group will take all necessary legal action to protect its interests.”Alongside the restructuring, Lyon have secured new commercial agreements with Dalkia, Heineken, Monster Energy, Winamax and XTB.Olympe Bidco is expected to launch an offer for the remaining shares, while a planned transfer of the company’s listing to Euronext Growth will take place no earlier than December 16 and after that offer closes.