Lyon Provisionally Relegated to Ligue 2 Due to Financial Issues

Lyon, a French club currently participating in this season’s Europa League, faces provisional demotion to Ligue 2 at the conclusion of the season unless its financial standing improves. The club will also be subject to a ban on signing players in January. John Textor, the owner of Lyon, also holds a co-ownership position in Premier League club Crystal Palace and is the largest shareholder of the Brazilian club Botafogo. His Eagle Football Group recently reported debts amounting to £422m. The DNGC, the organization tasked with overseeing the financial accounts of French professional football clubs, issued this decision on Friday. Lyon’s payroll will also come under the supervision of the DNGC. Lyon, a club with seven French championship titles, will likely need to divest several key players in January to stabilize its accounts and retain its position in the top flight. American owner Textor could reportedly assist in managing the debt by selling his stake in Palace or by transferring players from Botafogo. Currently, Lyon holds the fifth position in Ligue 1 and the ninth position in the Europa League.