Lyon are facing serious repercussions after being sanctioned by France’s National Directorate of Management Control (DNCG) for financial mismanagement.
The club has been prohibited from making transfers in the upcoming January window and could face relegation from Ligue 1 at the end of the 2024-25 season if their financial outlook does not improve.
The DNCG, responsible for monitoring the financial health of French football clubs, issued the punishment following a hearing with Lyon’s management.
To remain in Ligue 1, the club must provide evidence of improved financial stability. In addition to the transfer ban, the club has been required to establish a stricter budget for player salaries, which will be closely monitored.
Lyon’s provisional relegation will occur regardless of their league position if the financial issues remain unresolved by the end of the season.
John Textor, the American businessman who owns Lyon, did not seem too surprised with the outcome.
🚨⚠️ Official: Olympique Lyonnais have been handed a provisional Ligue 2 relegation.
It also includes a transfer BAN due to their financial situation. pic.twitter.com/jTEsT3nYb3
— Fabrizio Romano (@FabrizioRomano) November 15, 2024
He said: “The meeting went well. We have no problems with the continuity of the model or with financial viability.
Once a dominant force in French football, Lyon won seven consecutive Ligue 1 titles between 2002 and 2008 and twice reached the Champions League semi-finals.
However, financial instability has plagued the club in recent years, with reported debts climbing to €505.1 million.
Textor, who also owns shares in Crystal Palace and Botafogo, has faced mounting challenges since acquiring the French side.
Despite their issues, Lyon currently sit fifth in Ligue 1 on 18 points, bolstered by a recent victory over fierce rivals Saint-Etienne.
But the club now faces a race against time to stabilise its finances and avoid relegation, a prospect that could significantly alter its legacy.
