Fraud of the century » A famous club paid 120 million euros for 5 players who never reached the club!

It is about five footballers from Botafogo, for whom Lyon would have paid an amount worth 120 million euros, but who have never set foot on French soil.

The scandal of “ghost transfers” shakes Olympique Lyon!

The whole case comes from the period when John Textor was in charge of the club. His tenure has left behind numerous controversies, but this latest deal threatens to become OL's heaviest blow yet, according to the aforementioned publication.

John Textor, the controversial former president of Olympique Lyon/Getty Images

The factoring companies, which acquired the receivables from Botafogo, began in the last days to contact Olympique Lyon, requesting the return of the money. It appears that these are transfers whose total value exceeds 120 million euros, although the players never reached the French club. Among the names mentioned are Luiz Henrique, Igor Jesus and Savarino. According to the documentation, they should have been part of the so-called “Intra-Eagle” transfers, given that both clubs were under the umbrella of the same ownership group.

• A factoring company is a financial institution (bank or IFN) that buys the receivables (invoices) of a company (the customer) with term payment, giving it the money immediately, in advance, at a lower value (after deducting a commission), helping it to improve its liquidity and manage its cash flow, taking care of collecting the money from the end customer (the debtor) at maturity.

• “Intra-Eagle” transfers refer to player transfers and interconnected financial transactions between Olympique Lyon and Botafogo, both owned by Eagle Football Group.

The scandal came to light after an email correspondence that initially seemed innocuous was revealed. However, a more detailed analysis showed that these documents hide serious consequences for the financial stability of the club.

They barely avoided relegation following a scandal

Lyon narrowly avoided relegation this summer after the original sanction was overturned following an appeal. The club then embarked on a period of rational management and savings, but old problems are resurfacing. This deal comes at the worst possible time for OL, who are trying to stabilize their budget and regain the trust of their fans.

The signed documents apparently confirmed the supposed transfers, although there was no real intention for the players to come to Lyon, according to “L'Equipe”.

Third parties would have been involved in the whole story, which complicates the situation even more. Factoring firms, thinking they were financing real transfers, are now demanding their money back. Lyon have yet to make an official statement on the details of the case, but sources close to the club claim the administration is shocked by the extent of the problems it has inherited.

A growing number of experts believe this could become one of the biggest financial-administrative scandals in recent European football history, not just because of the staggering sum but also the complexity within a single ownership structure.

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