Football BaBe
John Textor Ignored dire Lyon Financial Warnings from DNCG Before Club Purchase
John Textor received multiple alerts from the financial watchdog about Lyon‘s precarious economic state, yet the path to stability came only after a leadership shift. As the dust settles on a dramatic relegation threat, explore how oversight and fresh investment turned the tide for the French giants.
In a saga that gripped French football, American businessman John Textor overlooked critical advisories from the DNCG regarding Lyon’s massive fiscal gaps when he took over the club. This oversight nearly cost Olympique Lyonnais their top-tier status, highlighting broader economic woes in the league. With recent reports showing French professional clubs amassing over €1.5 billion in losses for the 2023-24 season-up from previous figures due to rising operational costs and sponsorship challenges-the incident underscores the urgent need for sustainable financial models.
- DNCG repeatedly warned Textor of Lyon’s financial issues
- Kang replaced Textor and stabilised the situation
- French football’s financial losses reached €1.3bn
DNCG’s Persistent Alerts to John Textor on Lyon’s Fiscal Crisis
Jean-Marc Mickeler, head of the DNCG, disclosed that Textor was consistently advised on the necessity of injecting significant capital right after acquiring the team. However, Textor did not deliver solid assurances to bridge the €240 million deficit flagged by the oversight group. Even with ongoing discussions and explicit demands for proof of incoming funds, his submissions fell short, resulting in a temporary drop to Ligue 2 for Lyon. Now shifting focus, Textor eyes acquiring a team in the UK. The situation flipped when an appeals board upheld OL’s Ligue 1 position, thanks to Michele Kang stepping in with viable economic strategies.
How Michele Kang Steered Lyon Away from Relegation Peril
The club dodged a major administrative disaster following an exceptionally chaotic close to their campaign. The DNCG spotlighted severe budgetary mismatches and absent reliable funding commitments, which triggered the interim downgrade as a stark reminder to club leaders and investors. Kang’s arrival, backed by revamped leadership, played a pivotal role in rebuilding trust and securing their elite league spot. Amid this, the DNCG emphasized that while Lyon pulled through, the ordeal revealed escalating economic vulnerabilities across French soccer, where cumulative deficits for pro teams topped €1.3 billion in the prior year.
Insights from DNCG President on Communication Breakdown
In a conversation with L’Equipe, Mickeler elaborated on the watchdog’s observations: “We’ve engaged more with John Textor as president than anyone else. Our guidance was thorough. From the start of his ownership, we stressed the importance of major investments ahead. We believed he grasped the severity.”
He continued: “By December, it became evident there were huge gaps between the June projections and their autumn revisions. We issued the downgrade as a safeguard, providing precise directives on what was required to ensure the club’s longevity.”
Lyon’s Future in Ligue 1 Under Michele Kang’s Guidance
Under Kang’s direction, Lyon secures its place in Ligue 1 for the 2025-26 term. They kick off with a challenging away match against Lens. Though they evaded demotion, the team faces rigorous financial guidelines to meet continuous DNCG oversight. Anticipate strategic asset disposals and careful budgeting in their overhaul, as fans and officials anticipate a smoother ride in Kang’s debut year leading the charge.
