Olympique Lyonnais’s financial predicament has resulted in a transfer ban and a provisional relegation from Ligue 1. A report from L’Equipe says the club was set to meet with France’s financial watchdog, the DNCG – Direction Nationale du Contrôle de Gestion, on Friday morning to talk about its future operations. What decision did the DNCG come to?
Lyon Handed Provisional Ligue 2 Relegation
Lyon finds itself in a tough situation as they have been given a provisional demotion to Ligue 2. The French football authority DNCG has announced that the club “could face demotion as a precautionary measure” after the 2024-25 season. This statement was officially made on Friday by the DNCG after meeting with the representatives of Lyon.
The French football financial authority has chosen to impose a temporary relegation to Ligue 2 on the club owned by John Textor in Ligue 1. They currently face relegation, and a recruitment ban, and their payroll will be closely monitored. The temporary relegation to Ligue 2 could have serious effects on Lyon.
Why Lyon Was Handed the Provisional Ban
The decision results from Lyon’s failure to abide by financial fair play (FFP) requirements, as well as increasing debts that have placed the club in violation of league financial health standards. Ligue de Football Professionnel (LFP) officials have taken a close look and decided that Les Gones financial setup isn’t working anymore. A representative from the LFP stated: “This decision aims to uphold the integrity of the league and ensure financial stability across all clubs. Lyon’s financial challenges pose significant risks, and immediate action is necessary.”
The Ligue 1 club’s debt has increased from €458 million to €508 million. Textor mentioned to the DNCG today that Lyon could sell players, including those from Botafogo, which is also in the Eagle Football Group. He also talked about selling a 45% stake in Premier League team Crystal Palace to help manage finances. The American businessman felt good about his meeting with the DNCG, but it seems the financial watchdog had a different opinion. Lyon is facing the risk of relegating to Ligue 2 unless their financial issues get significantly better.
Lyon’s President Disappointed With the Outcome
The club’s president, John Textor, showed his disappointment with the decision but promised to fight back against it. He said: “We strongly disagree with the decision and are already working on an appeal. Lyon is committed to resolving these financial issues and ensuring the club remains competitive at the highest level.”
Lyon’s dedicated fans have expressed their frustration, with many demanding more openness from the club’s leadership. Fans gathered outside the Groupama Stadium, calling for answers and guarantees about what lies ahead. Les Gones may have to let go of some of their top players, like France U21 star Rayan Cherki (21) or Belgian winger Malick Fofana (19), for a low price during the upcoming winter transfer window.
Final Thoughts
Lyon has been facing financial troubles for a long time. Bad investments, high player salaries, and poor performance in matches have all contributed to a drop in income. The COVID-19 pandemic put extra pressure on finances, along with the club’s failure to qualify for European competitions in the past few seasons. Lyon is currently facing a temporary relegation, but they need to meet strict financial rules to prevent being demoted for good. This includes giving the LFP a full recovery plan within the next 30 days, taking care of outstanding debts, and ensuring all FFP rules are followed.
If Lyon doesn’t meet these demands, they will be relegated to Ligue 2, putting their place in the top division and financial health at serious risk. Les Gones will have a difficult time rebuilding if the penalty is upheld. The transfer ban makes it hard for them to improve the team, and if they get relegated, they might lose important players. Also, reduced income from TV and sponsorship deals might make their money problems worse.
