KBRA Affirms and Places on Watch Developing Status the BBB+ Rating for FCT OL StadCo’s EUR320 Million Senior Secured Notes

KBRA Europe (KBRA) affirms and places on Watch Developing status the rating for FCT OL StadCo’s (StadCo) EUR320 million senior secured notes due June 2044. The affirmation reflects StadCo’s financial performance for the 2025/2026 season, which has been robust due to Olympique Lyonnais’s (OL) on-field performance and participation in the Europa League, providing additional matchday ticketing and other revenues for the club. The Watch Developing status reflects the recent announcement that OL’s ultimate owner (Eagle Football Holdings Bidco Limited) has been placed into administration by its majority lender, Ares Capital Corporation. KBRA is monitoring the situation as a change of control could be deemed to have occurred. KBRA also understands that certain creditors of Botafogo de Futebol e Regatas (Botafogo) maintain that OL owes outstanding amounts in connection with factoring transactions entered into by Botafogo related to certain player transfers in 2024/25. KBRA understands that the players in question were never registered in France and the Direction Nationale du Contrôle de Gestion (DNCG) has been made aware of the situation. OL disputes liability and the matter remains subject to ongoing discussions and/or litigation. No formal ruling has been issued. KBRA will continue to monitor both situations over the coming months.

Key Credit Considerations

(-) Eagle Football Group Holdings Bidco Limited Administration 

On 27 March 2026, it was announced that Ares Capital Corporation placed Eagle Football Holdings Bidco into administration after it was alleged to have defaulted on its debt. KBRA understands that the owner of Eagle Football Holdings Bidco, John Textor, denies this and intends to defend his position through a legal process.

(-) Transfer Claim by Botafogo 

Certain creditors of Botafogo have claimed that OL owes outstanding sums in connection with factoring transactions entered into by Botafogo related to certain player transfers from Botafogo to OL during 2025. KBRA understands that the players in question were never registered in France and were subsequently transferred from Botafogo to clubs outside of Eagle Football Group. The Direction Nationale du Contrôle de Gestion (DNCG) has been made aware of the situation. However, OL dispute liability and there has been no formal ruling on the matter. The claim remains open to ongoing litigation between OL and Botafogo’s creditors.

(+) StadCo Financial Performance

StadCo performance has been robust throughout the 2025/2026 season, with secured revenue generation improving due to increased matchday ticketing and other revenue as a result of OL’s participation in the Europa League and progression through domestic cups.

Surveillance Rating Rationale

Under KBRA’s rating and stress cases, the assigned revenues are sufficient to repay debt service. The rating is based on a KBRA Project Risk Score (KPRS) of Strong and a sound financial risk profile. Under the KBRA rating case, aggregate average and minimum debt service coverage ratios (DSCR) are 2.78x and 2.54x, respectively, which, along with fully amortising debt and strong cash flow resiliency, support the rating on the notes.

Outlook

The placement on Watch Developing status reflects the recent announcement that OL’s ultimate owner, Eagle Football Holdings Bidco, has been placed into administration, and the claims against OL by Botafogo’s creditors. In KBRA’s view, there has been no immediate financial impact on OL or StadCo, which have both performed strongly during the 2025/2026 season and KBRA understands that the revenue assignment, collateral package and debt service profile supporting StadCo remain in place, and debt service performance has not been disrupted. However, KBRA will continue to monitor both situations in the coming months. The Outlook is likely to revert to Stable if an appropriate resolution to both situations is achieved without a material impact on either StadCo or OL in the short- to medium-term.

Rating Sensitivities

An upgrade is unlikely as StadCo and OL are indefinitely exposed to the risk of relegation.

A rating downgrade could occur should either the administration process of Eagle Football Holdings Bidco or the claims against OL by Botafogo’s creditors result in OL facing possible further sanctions and/or relegation to Ligue 2 by the DNCG, all of which could lead to reduced ticket prices, declining attendances, and more limited commercial opportunities, which will in turn impact StadCo’s ability to generate revenues. Additional downward pressure may arise if potential future changes in ownership and/or commercial strategy occur as a result of the aforementioned issues, leading to a negative impact on StadCo’s ability to generate the various revenue streams used to pay debt service. Finally, the occurrence or existence of an event of default by StadCo and/or OL could result in changes to the transaction documents or an acceleration by noteholders, which may result in a rating downgrade.

ESG Considerations

Environmental Factors

During the 2021/2022 season, OL was certified as a “Committed Club” by Fair Play for Planet, due to efforts to reduce its environmental impact. This included focusing on energy and water consumption; transport and accessibility; andwaste management.

Social Factors

The Groupama Stadium is used to support social projects, making the stadium a valuable, regional resource as a Community Innovation Centre. The stadium regularly hosts employment forums and job-seeking events in partnership with Pole Emploi, the French national employment office, and Nes & Cite, a company that promotes social integration.

Governance Factors

OL is currently controlled by Eagle Football Holdings Bidco, which acquired 88% of the share ownership notably from Mr. Jean Michel Aulas in 2022/2023. Eagle Football Holdings Bidco is an experienced football club owner, with various stakes in different clubs. Notably, 2.90% of Eagle Football Group (formerly OL Groupe) is traded publicly on Euronext Paris, which provides a more stringent level of oversight than some privately owned teams. KBRA understands there are no immediate plans to delist OL Groupe; however, there is an ongoing administration at OL’s ultimate ownership entity, which is currently evolving. The remaining ownership consists of 6.91% treasury shares and an 2.41% minority shareholding by Mr. Aulas via his holding company, Holnest.

To access ratings and relevant documents, click here.

Methodologies