Ligue 1’s Lyon has secured major funding, a key part of a club reorganization led by American businessman John Textor’s Eagle Football Holdings.
After seeking $315 million from the bond market in September, Textor, Lyon, and club parent OL Group have completed a $342 million refinancing that will help get the team’s troubled debt situation in order.
Set to close by the end of the year, the deal will allow the club to repay the balance of long-term stadium debt, as well as loans taken on during the pandemic and money owed to private parties including the family office of former Lyon majority owner Jean-Michel Aulas.
Led by Goldman Sachs, the refinancing arrives as Textor is also selling off non-core club assets, including LDLC arena, a new 16,000-seat, multipurpose venue due to be completed later this year that is separate from Lyon’s home stadium, Parc Olympique Lyonnais.
Lyon is also selling NWSL’s OL Reign, which lost in Saturday’s NWSL Championship match. Major League Soccer’s Seattle Sounders have reportedly had “advanced talks” to acquire the club.
“The affirmation of leading credit rating agencies and the quality of our new investors are a testament to the strength of the OL brand, the improving health of our business, and the strength of our go-forward business plan,” said Textor, who acquired Lyon last year in a $842 million deal.
There are still competitive issues for Lyon, as the club is currently in last place in Ligue 1 and facing potential relegation.
