(Reuters) – Olympique Lyonnais owner Eagle Football Group (EFG) said on Monday it will start talks with employee representatives to possibly cut jobs following a significant transfer deficit and reduction in domestic media rights revenues.
The French Ligue 1 club’s parent company, Eagle Football Holdings (EFH), is also expected to provide EFG with working capital of around 40 million euros in the coming weeks, in addition to capital contributions following the sale of its stake in Crystal Palace and the launch of a 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 targets, mainly due to the decision of certain players to stay with 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 euros, while around 145 million euros was spent on player acquisitions and loans since June, more than any other team in France.
Last month the French newspaper L’Equipe reported that Lyon had put the majority of their squad on the transfer market to raise 75 million euros to balance their budget and meet financial sales targets.
(Reporting by Dimitri Rhodes, editing by Pritha Sarkar)
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