PARIS -- Lyon owner John Textor has attacked a decision by French ’s financial watchdog to monitor the club's transfer activities this season.
The American businessman, who also has stakes in Premier League team Crystal Palace, Belgian second-division club RWD Molenbeek and Brazil's Botafogo, made clear his frustration in a “Welcome to France” message that he posted on his website.
Textor said the club took note of the French Football Federation's confirmation on Tuesday of the initial opinion delivered by the DNCG watchdog. Lyon (OL) will be authorized to hire new players but its moves on the market will be limited under “a framework for wage costs and transfer indemnities.”
That will likely hamper its summer recruiting.
The DNCG ruled that Lyon did not provide sufficient financial guarantees despite the OL group's latest arguments.
“In addition to the presentation of our budget and business strategy, OLG management also offered new elements, as previously requested by the DNCG, providing proof of funds showing my deposit of 60 million euros ($67 million)," Textor said.
“We do not believe this capital should be necessary, but it has been set aside, out of respect for the DNCG, as an additional assurance that OLG is well-capitalized, even under the most conservative projection scenarios,” Textor added.
Textor became Lyon's main shareholder last year and was appointed as chief executive officer of OL Group in May with Lyon’s iconic Jean-Michel Aulas stepping down as president.
Textor’s Eagle Football acquired a stake of 77.49% in the club, pledging in December to provide a capital increase of 86 million euros.
“Eagle Football has invested 211 million euros ($237 million) of cash equity in support of the health of OLG since its December acquisition,” Textor said. “We also proposed to the DNCG and to the commission the transfer of all Eagle Football assets into OLG, thereby injecting more than 300 million euros of net equity onto the balance sheet, and assuring that OLG stands as one of the most well-capitalized organizations in Europe.”
Lyon’s run of seven titles from 2002-08 made it the powerhouse of French soccer. But after Bordeaux ended Lyon’s run in 2009, the club’s fortunes dipped. Lyon finished seventh last season, 23 points behind champion Paris Saint-Germain.
“We were invited to purchase one of the true treasures of football in France,” Textor said. “We were invited to pay out cash of nearly 400 million euros to its long-time shareholders, pay 65 million euros in cash to its interested public shareholders, pay down bank debt by 50 million euros, then fund another 60 million euros in cash (on short notice) just for cushion … but we are not yet invited to execute a business plan based on our beliefs, with a free hand, for the benefit of the community we serve."
The combative message ended with "welcome to football in France!”
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