Lyon’s parent company considers job cuts amid financial problems – FBC News

(Source: Reuters)

Olympique Lyon’s owner, Eagle Football Group (EFG), said on Monday it would open talks with employee representatives over possible job cuts amid a significant transfer deficit and falling revenues from domestic media rights.

The French Ligue 1 club’s parent company, Eagle Football Holdings (EFH), is expected to provide EFG with around €40 million in working capital in the coming weeks, in addition to capital contributions following the sale of its stake in Crystal Palace and the launch of the formal IPO process on the New York Stock Exchange.

“During the summer mercato (transfer period), the club had significant opportunities to sell players but did not achieve its objectives, mainly due to the decision of some players to remain at Olympique Lyonnais,” the group said in a statement.

The club added that the total value of player contracts sold during the transfer period was around €39 million, while around €145 million had been spent on player acquisitions and loans since June, more than any other club in France.

Last month, French daily L’Equipe reported that Lyon had put the majority of their squad up for sale in a bid to raise €75 million to balance their budget and meet financial sales targets.