Olympique Lyon Uncovers Financial Irregularities Under Former Owner, Threatens Legal Action
French club Olympique Lyon has revealed serious financial irregularities and inherited commitments from the tenure of its former owner, John Textor. In an official statement issued on Tuesday morning, the club announced it disputes the validity of certain recently discovered financial obligations. These include the club acting as a guarantor for three player transfers to other clubs within Textor's Eagle Football Group, such as Brazil's Botafogo and Belgium's RWD Molenbeek, between August 2023 and April 2025.
An audit has uncovered details that raise significant legal questions, most notably the case of Brazilian striker Igor Jesus. He was transferred in a deal exceeding €40 million without ever playing a single match for Olympique Lyon, and the player is currently with England's Nottingham Forest. The club's statement affirmed that "these facts place the group in a state of uncertainty regarding the continuity of operations," suggesting that a new shareholder is needed to secure the necessary funding. The club emphasized its stance, stating, "The group disputes the validity of these commitments and will take all necessary measures to defend its interests," clearly indicating potential legal action against the former owner.
The club noted an improvement in operational performance due to cost-cutting policies implemented by the new management, led by Michèle Kang. However, the financial situation remains critical due to past obligations and a decrease in the value of debts owed by related parties. The club's total debt exceeds €600 million, with Botafogo owing Olympique Lyon €126.2 million. Under these circumstances, legal experts believe that charges of corporate asset misuse could form the basis for any potential lawsuits against John Textor, who was removed from Botafogo's management on April 23.
Olympique Lyon is currently working to stabilize its financial structure by negotiating with creditors, a process expected to conclude by the end of the current season. In its statement, the club highlighted "an urgent need to secure financing and restructuring solutions" to ensure the institution's financial future amidst current challenges. This move follows Michèle Kang's assumption of the club presidency in early summer 2025, with the aim of correcting the team's administrative and financial trajectory.
