Textor demands US$400m as Lyon power struggle turns legal

John Textor has sued Michele Kang for at least US$400m, escalating the ownership battle around Lyon less than a month after she agreed a deal that would sever the club’s ties to his Eagle Football Holdings group.The lawsuit, filed in Florida state court, includes claims of defamation, fraudulent concealment and civil conspiracy. Textor alleges that Kang encouraged him to relinquish operational control while privately working with Eagle lender Ares on a separate governance arrangement.A spokesperson for Kang said: “The allegations are baseless and entirely without merit, and this complaint represents John Textor’s latest attempt to divert attention from his own wrongdoing.“Michele Kang remains focused on the long-term success and recovery of Olympique Lyonnais, and she will respond through the appropriate legal channels.”Textor claims he agreed to step aside after Lyon were relegated by French financial regulator DNCG over their finances, a decision later overturned on appeal. He alleges he was told the regulator would view the club more favourably if he resigned as president and chief executive.The complaint says Kang had already negotiated a framework with Ares that created what Textor describes as a “shadow board”. He claims he only discovered the alleged arrangement months after giving up control, following information supplied by a whistleblower.Textor alleges that the unofficial group met around 30 times in five months, compared with two meetings of Eagle’s formal board. He claims the structure was intended to push Eagle Football Holdings towards insolvency before Lyon were acquired at a discount.Eagle Football Holdings was placed under the control of UK restructuring administrator Cork Gully in March. The group also holds interests in Brazil’s Botafogo and Belgian club RWDM Brussels.Kang reached an agreement in June to take over Lyon, adding the men’s club to a portfolio that includes the Washington Spirit, the Lyon women’s team and London City Lionesses.The dispute is unfolding alongside separate legal action in France. Textor has filed a criminal complaint against Kang, while Lyon’s parent company has launched proceedings concerning suspected transactions identified during an internal audit.Kang is the only defendant named in the Florida case, and the claims have not been tested in court. The lawsuit now places the restructuring of one of France’s leading clubs at the centre of a wider fight over control, creditor influence and multi-club ownership.