Since the opening of its private stadium, OL Groupe has developed a high-performance business model, which regularly and substantially increased revenue and financial performance up until the Covid-19 public health crisis began to have a strong negative impact on the Group's activities in March 2020.
For the 2020/21 season, the Group aims to continue investing significantly in player assets, even though the Club is not competing in a European competition (for the first time in 23 years), in an effort to maintain a competitive team and return to the Champions League in 2021/22.
In particular, the following factors are likely to support growth in the Group’s business in 2020/21 and mitigate the decline in revenue deriving from the men’s team’s absence from European cup play and the current public health measures: the contractual increase in Ligue 1 media rights, the significant rise in sponsorship revenue, and a particularly rich programme of events in 2021, public health conditions permitting.
In the context of its “Full Entertainment” business development strategy, OL remains confident in its ability to achieve total revenue of €420-440 million p.a. (including player trading) and EBITDA in excess of €100 million by 2023/24, assuming the current public health crisis is resolved in the short term.
The Group is actively working on a project to build a new events venue near the stadium with a capacity of 12,000 to 16,000 people. This new arena, which should represent an investment of around €140 million, will complement the Group’s “Events” capacity, with the objective of hosting 80-120 events per year, including concerts, seminars and large professional trade shows, as well as sport and eSport competitions. The arena is slated to open in the second half of calendar year 2023, subject to the administrative approvals in progress.
At the same time, the Group is pursuing the development of OL Valley and gradually finalising the new infrastructure planned for that area. The leisure & entertainment centre is expected to be inaugurated in February 2021 and the All in Tennis Academy in 2022/23.
We remind you that OL Groupe’s ability to realise these objectives can be affected by both known and unknown risks, uncertainties and other factors that could make future results, performance or achievements significantly different from the objectives formulated or suggested here. These factors could include changes in economic or market conditions or regulations, as well as the risk factors detailed in OL Groupe’s 2019/20 Universal Registration Document.