Chelsea complications may speed up the sale of another top club

Frozen assets of Roman Abramovich and the uncertain future of London’s Chelsea FC may serve as an indirect catalyst for the sale of the elite French club Olympique Lyon.

The American investment bank The Raine Group is going through hectic times. Founded in 2009, the financial institution manages assets worth over $4 billion and is currently working on two high-profile deals. It was The Raine Group that was entrusted with brokering the sale of two elite football brands. When Russian oligarch Roman Abramovich announced in early March his intention to sell his football toy Chelsea London after 19 years, the American bank received around 150 expressions of interest from potential buyers. Not even the asking price of €3.6 billion deterred them.

However, a major turning point came last Thursday, both for the American firm and for Abramovich himself. In response to the Russian invasion of Ukraine, the British government froze the former Chukotka governor’s assets and imposed strict sanctions on one of Putin’s close associates. The sale of Chelsea thus became significantly more complicated. Moreover, the famous club is now operating only in a provisional mode.

In the shadow of the possible sale of "The Blues," it went largely unnoticed that another of Europe’s legendary clubs—Olympique Lyon—is also up for sale. Coincidentally, the seven-time French champions have also enlisted the services of The Raine Group to facilitate the ownership change. But unlike Chelsea, Lyon is not facing any legal obstacles, which could speed up the process.

From a prestige and overall valuation standpoint, selling Chelsea had been the bank’s top priority. But due to the recent complications, the list of strategic goals inside The Raine Group may shift. After all, Lyon is hardly an unattractive asset—quite the opposite.

The club’s financial indicators speak for themselves. In last year’s Deloitte Football Money League rankings, the French team placed 18th with revenue of €181 million. And in the advisory firm KPMG’s valuation rankings, "Les Gones" (as Lyon is nicknamed) finished 16th with a total valuation of €489 million—ranking ahead of iconic names like AC Milan, Ajax Amsterdam, and Benfica Lisbon.

Lyon’s youth academy is among the best in the world, having produced players such as Karim Benzema, Alexandre Lacazette, and Corentin Tolisso. The current squad also features a number of talented youngsters, whom Lyon’s leadership will almost certainly sell for substantial profits. The team’s current squad value is €316 million.

According to sports analyst Jozef Tokos, Lyon’s biggest advantage is that its sale is a purely private transaction, requiring no governmental approval. "The sale of Chelsea is now a matter of political interest in the United Kingdom, and I can’t imagine the deal proceeding without close cooperation with the government. This is not an issue in Lyon’s case," Tokos told Economic Daily.

For many years, Lyon has been run with a firm hand by seasoned president Jean-Michel Aulas, who owns nearly 30 percent of the club’s shares—a stake he plans to keep. In contrast, production company Pathé, which owns one-third, and IDG Capital, which holds just under 20 percent, are looking to sell their stakes.

Another strength is that Lyon is robust both in terms of sporting and financial performance. Could one of Chelsea’s potential buyers end up redirecting their interest to Lyon due to the shared bank representative? "That can’t be ruled out, though it remains speculation. Still, it certainly gives the bank a comparative advantage," Tokos concluded.