What Lyon's Financial Collapse Means for Tanner Tessmann

After Mauricio Pochettino’s first four matches leading the US Men’s National Team, one player has cemented himself early on in the manager’s good graces. Despite the midfield being equally talented as it is crowded, Lyon’s Tanner Tessmann has emerged as a crucial cog in the Pochettino machine. Pochettino singled him out after the 4-2 win against Jamaica:

"Tess today was fantastic. If you say to me, I need to put a note, from 0 to 10, it's 9. He played a fantastic game. He's a very good talent; hope that he can play more in Lyon."

Tessmann secured a transfer to Ligue 1 giants Lyon this past summer, but things aren’t looking rosy for the club. Lyon were handed a provisional relegation and transfer ban by the DNCG, a French authority that proactively oversees French football finances. It’s the same authority that, in recent times, has handed debilitating judgments against Bordeaux, Sochaux, and Nancy. Lyon has until the end of this season to show genuine improvement in their financial picture. The circumstances that led to this moment—and what it means for Tanner Tessmann—should be examined.

The Doomed Mediapro Deal

In 2018, French football felt unstoppable. A World Cup win cemented its national team’s status as one of the globe’s elite, and the domestic league, Ligue 1, was on the verge of securing its financial future. The crown jewel of this promise was a record-breaking TV rights deal with Mediapro, a Spanish-Chinese media company that agreed to pay €1.15 billion annually from 2020 to 2024. The deal was touted as a transformative moment for French football, a leap that would bring it closer to the financial powerhouses of England’s Premier League and Spain’s La Liga.

Clubs expanded their budgets, raised wages, and planned for a future where consistent TV income would fuel their ambitions. But when Mediapro entered the scene, it seemed too good to be true—because it was. By October 2020—just a few months into the deal—the company announced it couldn’t pay its installments. By December, the deal had collapsed.

Mediapro’s aggressive bid lacked a clear plan for profitability, and its newly created Téléfoot channel struggled to attract subscribers. The COVID-19 pandemic further strained club finances, and the deal's collapse left Ligue 1 scrambling. Canal+, Ligue 1’s traditional broadcaster, stepped in, but at a fraction of the original amount: €332 million per year.

The shortfall hit clubs like a wrecking ball. Clubs expanded budgets based on Mediapro’s promises suddenly faced deficits, leading to fire sales and shelved investments. Bordeaux and Saint-Étienne struggled to stay afloat, with the latter being relegated in 2022. Meanwhile, the league sought outside investment, selling a 13% stake in its commercial rights for €1.5 billion.

John Textor’s Multiclub Ownership Model and Lyon’s Strategy

Amid this financial chaos, Lyon's ownership changed hands. John Textor, an American entrepreneur, became a key figure in football’s multiclub ownership trend. He owns stakes in Lyon (France), Crystal Palace (England), Botafogo (Brazil), and RWD Molenbeek (Belgium). Textor’s model relies on resource-sharing and player movement within his network to mitigate financial risks.

For Lyon, Textor’s strategy has been both a lifeline and a point of contention. The club’s provisional relegation and transfer ban have heightened the importance of his interconnected framework. Players from Botafogo and Molenbeek have joined Lyon on favorable terms, strengthening the squad without significant financial outlays. However, critics argue this raises ethical concerns about fair competition.

DNCG Provisional Relegation and Transfer Ban

The DNCG, French football’s financial watchdog, reviews clubs’ budgets, cash flows, and debt levels proactively. When clubs fail to meet its standards, sanctions include point deductions, transfer bans, or relegation.

Historically, Lyon was a beacon of stability. Under Jean-Michel Aulas, they won seven consecutive Ligue 1 titles from 2002 to 2008. But since Aulas sold his controlling stake to Textor in 2022, Lyon’s financial health has deteriorated. The club’s debts have swelled to over €500 million due to high operating costs, stagnant revenues, and a lack of Champions League income.

In its latest review, the DNCG issued Lyon a provisional relegation to Ligue 2 and a January transfer ban. “Provisional relegation” means Lyon will be relegated at season’s end unless they rectify their finances. This gives the club time to sell assets, restructure debt, or secure new investments.

Textor has stated there is “no chance” Lyon will be relegated. He may leverage his other clubs, like loaning Botafogo’s stars to Lyon, or even sell his stake in Crystal Palace. However, failure would trigger an exodus of talent and prolonged financial struggles.

What Does This Mean for Tanner Tessmann?

Tanner Tessmann’s move to Lyon as their first American signing is both a challenge and an opportunity. Lyon’s turmoil may limit stability, complicating his adaptation. However, with a transfer ban, the club must rely on its current roster, potentially giving Tessmann more playing time.

If Lyon avoids relegation, Tessmann could emerge as a pivotal player. Success at Lyon during this crisis would demonstrate his resilience and readiness for the USMNT’s future challenges. But Lyon’s uncertain fate casts a shadow, making his journey one to watch closely.