Lyon have been handed a provisional relegation to Ligue 2, the second division of French football, and will observe a transfer ban following an audit of their finances.
The Direction Nationale du Controle de Gestion (DNCG, the body responsible for overseeing the finances of French football clubs) has informed Lyon, who won the French title for seven successive seasons from 2001-02 to 2007-08, they must satisfactorily improve their financial situation before the end of the season or be forcibly demoted from Ligue 1. The club have been forbidden from registering any new signings.
Bordeaux lost their professional status in July after being administratively relegated two divisions to the fourth tier by the DNCG.
The DNCG administratively relegated Sochaux one division to the third tier in 2023. However, clubs can appeal any final decision; Nancy were reinstated into the third division in 2023-24 after an appeal against the DNCG’s verdict to relegate them a further two tiers.
John Textor — whose Eagle Football Group owns a 77 per cent stake in Lyon alongside controlling stakes in Premier League club Crystal Palace, Brazilian club Botafogo and RWD Molenbeek of Belgium — has said he has no concerns over Lyon’s status in the top tier of French football and believes the club’s finances will satisfy the authorities before the May deadline.
The most recent set of Eagle Football Group accounts, posted this month, showed that its financial debt stood at €505.1million (£422m), up from €458.5m (£382.8m).
Textor, the 59-year-old who made an offer for Everton this year, said his group’s accounts also “showed significant inbound cashflows” and he said that “there is no chance the club won’t cover the gap.”
The Florida-based businessman bought Lyon in December 2022 and said on Friday, before the DNCG’s announcement, that the club “will not sell the fans’ favourite players or our best players.” He will hold a press conference on Saturday, November 16, in which he will discuss Lyon’s financial accounts.
Textor’s position is that cash registered from the sale of Botafogo players could be directed towards Lyon’s finances, as could monies raised by the sale of his 45 per cent stake in Palace. In May, he engaged investment banking firm Raine Group to actively seek a buyer for Eagle Football’s stake in the south London club.
Botafogo are top of Brazil’s Serie A and on course to win just their third league title and their first since 1995, while they will contest this season’s Copa Libertadores final for the first time against fellow Brazilian club Atletico Mineiro. Should Botafogo win the South American tournament they would qualify for the newly-expanded FIFA Club World Cup — the 32-team tournament is taking place in the United States next summer.
The DNCG’s verdict may force Lyon into considering January transfer sales, with Belgium winger Malick Fofana, 19, and homegrown forward Rayan Cherki, 21, among their players who would likely command a market.
“If we sell good players we will replace them,” Textor said, who added that for Lyon, it would be a “failure not to qualify for the Champions League” in the 2024-25 season.
Lyon — competing in this season’s Europa League — are fifth in Ligue 1 with 18 points from 11 matches, and return to Ligue 1 action on November 23 with a trip to Reims.
Additional reporting from Matt Woosnam.
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