Olympique Lyonnais, one of France's leading soccer clubs, has reported a record loss of over €200 million ($232.5 million) during the 2024-25 financial year. This significant financial downturn is largely attributed to the ongoing turmoil surrounding Ligue 1 domestic broadcast rights.
The club was initially set to be demoted to the second-tier Ligue 2 for the 2025-26 season due to extreme financial mismanagement. However, this decision was overturned on appeal in November. Following this ruling and Lyon’s subsequent appeal in June, there was a reshuffling of executive management at the club.
Michelle Kang, a minority investor and majority owner of OL Lyonnes (the associated women’s team), stepped into the role as president after controversial US businessman John Textor resigned.
Closer look at Lyon's financial struggles
In total, Lyon lost €201.1 million and saw non-transfer related income fall by an alarming rate during this period. The non-transfer related income dropped from €264.1 million in the previous year to just €162.6 million – marking a year-on-year drop of 38%. In comparison, during the 2023-24 season, net losses were significantly lower at only €25.7 million.
The club's total revenue also fell by approximately 24%, amounting to just €273.7 million compared with previous years. Media and marketing rights income contributed only €45.7 million instead of its usual contribution around double that figure -€95.4m from last year-. This drastic reduction is mainly due to issues surrounding Ligue 1 domestic media rights which have severely impacted clubs' finances across France.
Lyon expects a further "very significant decline" in the value of domestic media rights for 2025-26. This is due to all games now being broadcast by Ligue 1's own in-house streaming platform, as opposed to primarily by DAZN last season.
Impact of private equity giant CVC
The amount French top-tier clubs can generate from TV revenue is also negatively affected by private equity giant CVC taking a cut of the total incoming domestic media rights fees each season, as part of a wider deal with Ligue 1.
There were also year-on-year drops in income from both 'brand-related revenue' and 'brand products' sectors. A rise in ticketing income – to €42.8 million, up from €33.9 million – was not enough to compensate for these losses. Despite financial struggles off the pitch, Lyon managed to finish sixth in Ligue 1 during the 2024-25 season, qualifying them for UEFA Europa League this season. They also reached the quarter-finals of that same competition last campaign.
Earnings before interest, taxation, depreciation, and amortization (EBITDA) came to minus €47.7 million last season compared with a positive figure of €44.2 million the prior year. The club stated that this figure was "significantly impacted by higher personnel costs," mainly related to major player signings during that financial year.
