French football giants Lyon face the prospect of demotion to Ligue 2 at the end of the season if they fail to address their mounting financial problems. The ruling, issued by the French National Directorate of Management Control (DNGC), also includes a ban on the club signing players during the January transfer window.
The club, owned by American businessman John Textor, is grappling with debts of £422 million, as recently disclosed by his Eagle Football Group. Textor, who also owns stakes in Premier League side Crystal Palace and Brazilian club Botafogo, is under pressure to stabilize Lyon’s finances.
As part of the DNGC’s sanctions, Lyon’s payroll will now be closely monitored, adding further constraints on their financial operations.
To comply with the DNGC’s requirements and avoid relegation, Lyon may need to offload several key players during the January transfer window. Reports suggest Textor could explore other measures to manage the debt, including selling his stake in Crystal Palace or transferring players from Botafogo to Lyon.
The seven-time Ligue 1 champions, who dominated French football in the 2000s, now find themselves in a precarious position. Currently fifth in Ligue 1 and ninth in their Europa League group, their on-pitch performance has failed to overshadow the looming financial crisis.
Lyon’s struggles highlight the financial pressures faced by football clubs across Europe, particularly those reliant on ambitious ownership groups with multiple investments. For Lyon fans, the immediate priority will be seeing their team avoid demotion and preserve their place in French football’s top flight.
As the January transfer window approaches, all eyes will be on Lyon’s response to the DNGC ruling and Textor’s next move.
