Olympique Lyonnais might get market listing

Olympique Lyonnais is preparing to be listed on the stock market, which could make it the first French club to take advantage of a new law.

Olympique officials refused comment on whether the listing could take place next month after the club filed a reference document with the AMF French financial markets watchdog. But chairman Jean-Michel Aulas was hoping this could raise EUR 100 million in net funds.

It will be the first club to make the effort after France amended a law earlier this year that prevented professional sports clubs from listing on the stock market.

Aulas, who led the campaign for the regulations to be eased, told France Football that the listing "will happen before the return game in the Champions League against Roma (6 March)." The extra funds could be applied to build a stadium with a crowd capacity of 60,000.

The new French law allows clubs to list if they can show a strong balance sheet and business plan, and would have to be in a position to afford a modern stadium. The document also stated that the main risk to profitability was the club's dependency on sporting success, with 43.1 percent of its revenue coming from broadcasting rights.

The group is however trying to increase revenue from diversification, with merchandising and catering as main targets.

The two largest shareholders of six-time champions Olympique Lyonnais are Aulas with 50.01 percent through holding company ICMI, and media group Groupe Pathe with a 33.34-percent stake.

Aulas wants to retain control over more than one-third of the voting rights after the IPO, according to the documents. Olympique Lyonnais generated revenue of EUR 127.7 million, up 39 percent for the 2005-2006 fiscal year, ended 30 June. Including this income revenue was EUR 166.1 million.

Income from current operations rose 38 percent to EUR 24.4 million while net profit grew 37 percent to EUR 15.9 million.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.