OL GROUPE : ENCOURAGING RESILIENCE AMID AN ECONOMIC CRISIS
TOTAL 2008/09 REVENUES: €191.9m
REVENUE EXCLUDING PLAYER TRADING: €139.9m
PLAYER TRADING: €52.0m
Lyon , 28 July 2009
The events of the 2008/09 financial year confirmed the development of Olympique Lyonnais' activities, which has made it one of the top clubs in the French championship and one of the largest in European football, with revenue again close to €192m. Olympique Lyonnais continues to build up its leadership and is some way ahead of the other major French clubs.
As in the period to 31 March, full-year revenue was marked by:
· Further growth of 3% in ticketing and of 4% in partnership-advertising revenue in spite of the very depressed economic environment and consumer spending throughout the financial year, which held back trends in brand-related revenue;
· Player trading revenue (€52.0m), which held up at high level, close to the average for the three previous financial years (€56m).
Revenue from businesses (1 July to 30 June)
|In € m||Full-year 2008/09*||Full-year 2007/08||Change
|Partnerships - Advertising||21.3||20.4||+0.8||+4.0%|
|Revenue excluding player trading||139.9||155.7||-15.8||-10.1%|
|Revenue from sale of player registrations||52.0||55.9||-3.9||-7.0%|
|Total revenue from businesses||191.9||211.6||-19.7||-9.3%|
*figures are preliminary, estimated and unaudited
**including a €3.5m Sodexho signing fee and €1.8m in Peace Cup revenue
Revenue, which was lower than in the previous financial year, held up at a highly satisfactory level given the very challenging economic and financial conditions.The €22.4m ticketing revenue was again sustained by supporter loyalty and beat the record level set in the previous year. Revenue from partnerships and advertising advanced by 4.0% to reach its highest-ever level of €21.3m. The third-place finish in the French Ligue 1 championship had a fairly insignificant impact on this product line. Media rights revenue (LFP, FFF, UEFA) totalling €68.1m declined primarily because the club finished in third place in the French Ligue 1 championship and because three French clubs took part in the UEFA Champions League compared with two in the previous season. Brand-related revenue of €28.1m included a signing fee of €7m with Sportfive (Groupe Lagardère Sports), which was identical to last year. In the previous financial year, this also included a €3.5m signing fee with Sodexo and €1.8m in prize money from OL's victory in the Peace Cup. Changes in the scope of consolidation (outsourcing of catering operations, shutdown of the brasserie business, etc.) had a negative impact of €1.3m on this line item, and the consumer gloom depressed other brand-related revenue by €3.8m. Revenue from player sales and performance-linked incentives came to €52.0m, with the transfer of just five players, namely: Coupet, Squillaci, Baros, Paillot and Benzema. The gain over the financial year will be significant because two of them (Benzema €35m and Paillot €1m) came through OL's training centre. During the 2007/08 financial year, ten players were transferred, generating proceeds of €55.9m.
OL Groupe's 2008/2009 results, due to be published after the market closes on 27 October, are set to be in the black, but will be adversely affected by the economic environment and by a number of additional wage-related charges attributable to the above-average incidence of injuries.
2008/09 sporting achievements
Olympique Lyonnais finished in third place in the French Ligue 1 championship, coming in the top three for the eleventh season in a row. It qualified for the preliminary round of the UEFA Champions League, in which it reached the Round of 16 this season, before being knocked out by Barcelona, the eventual winner.
The women's team won the French championship for the 3rd season in a row and also reached the semi-finals of the Challenge de France and UEFA Cup competitions.
The OL reserves (CFA) team won the French professional reserve league title.
The U18 and U16 teams both reached the semi-final of the French championship.
These trophies are just reward for the hard work put in by OL's training centre.
Recent and forthcoming events
On 2 July, Olympique Lyonnais finalised the transfer of Kader Keita to the Turkish club Galatasaray for a minimum net amount of €8.5m, plus potentially another €0.5m in performance-linked payments.
On 7 July, Olympique Lyonnais announced that it had signed the Argentinean international Lisandro Lopez. The deal reached with FC Porto was for €24m, plus up to €4m in performance-linked payments.
On 16 July, Olympique Lyonnais reached agreement with Lille concerning the transfer of Brazilian midfielder Michel Bastos for €18m.
Lastly, on 20 July, Aly Cissokho joined the club following a €15m transfer from FC Porto.
In addition, two young players from the training centre, namely Maxime Gonalons and Loïc Abenzoar, recently signed their first professional contract with OL.
New Stadium Project - OL LAND
OL Groupe noted the promulgation on 22 July 2009 of the Development and Modernisation of Tourism Services Law and notably Article 28 Chapter VI.
This article allows large sports stadiums to be given "general interest equipment" status, paving the way for the construction of large stadiums to support France's bid to host the 2016 European championship. OL Groupe also noted that on 6 July 2009 the Greater Lyon Conseil Communautaire (Community Council) voted in favour of the draft zoning plan no. 1. Adoption of this draft zoning plan constitutes a major step forward towards implementation of the New Stadium Project.
Against this favourable backdrop, OL Group will continue to implement the OL Land project in Décines (information, consultation, pre-project, financing). The goal is to complete the construction of the project during the second half of 2013, in conjunction with all its partners (French government, Greater Lyon metropolitan authorities, Rhône department, Sytral and the municipal authorities of Décines-Charpieu) that jointly signed a preliminary agreement listing all their respective actions and the resources to be devoted to this objective.
Outlook and objectives
For OL Groupe, the current financial year will be marked by an overhaul of its management team and the pursuit of sporting objectives assigned to Claude Puel.
The New Stadium project is expected to gain pace owing to the favourable legislative changes and France's bid to host the Euro 2016 championship.
OL Group is hopeful that the law on online betting will be adopted as rapidly as possible following the warning given to the French government by the European Commission, thereby enabling Olympique Lyonnais and all the other French clubs to reap the benefit of partnerships with online betting companies such as Betclic. Since the current interpretation of the legislation in France does not allow Olympique Lyonnais or other French clubs to benefit from the major backing provided by such partnerships, they are hampered in international competitions.
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