March 10 – Olympique Lyonnais players have agreed to be compensated in shares rather than cash as the club has moved to offset its Covid-19 lost income.
In February, Lyon chairman Jean-Michel Aulas asked his players to take a pay cut in a bid to mitigate the financial fallout of the coronavirus pandemic as well as the losses form the Ligue 1 TV rights failures. Last season, the French club recorded a pre-tax loss of €36.3 million. In the first half of the new campaign, Lyon has amassed a pre-tax loss of €49.9 million.
The club described the move by the players as innovative. “OL Groupe’s board of directors would like to particularly thank the players, players and staff of both teams for participating in the operation put in place which will not have a significant dilutive effect and hopes for an even greater participation, even systematic, on the part of its professional staff in the days and weeks to come,” said Lyon in a statement.
Reports however surfaced that not all playing personnel accepted the pay cut in return for club shares. Aulas had proposed a temporary salary reduction of 25% for the players who earn above €50,000 per month.
In February, OL Groupe announced first half 2020/21 revenue of €123.3 million, €73.9 million down on the comparable period in 2019/20, this was despite the men’s team reaching the quarter finals of the Champions League and the club still generating €53.3 million from player sales in the January window, the sale of Bertrand Traore to Aston Villa for €15.9 million being the highest sale.
The club was hit hardest by the loss of domestic TV revenue as well as a €16.2 million impact on ticketing revenue.
Aulas and OL protested the abrupt ending of the Ligue 1 season in 2019/20 when the pandemic hit, saying that it was against the sporting integrity of the competition and unfairly prevented the club’s opportunity of qualifying for this season’s Champions League and its revenues.
“The opportunity loss stemming from the club’s absence from the Champions League this season is significant (€57.6 million in H1 2019/20),” said the club in its financial statement.
Previously, RC Lens ad Stade Reims were the first Ligue 1 clubs to introduce salary reductions and downsize operations for the remainder of the season.
Contact the writer of this story, Samindra Kunti, at moc.l1713874891labto1713874891ofdlr1713874891owedi1713874891sni@o1713874891fni1713874891