French giants Lyon have been provisionally relegated to Ligue 2 and slapped with a transfer ban due to escalating financial troubles.
Journalist Fabrizio Romano reports that the relegation will only take effect at the end of the season if the club fails to stabilize its finances by then. The club’s debt has surpassed €500 million, fueled by poor on-pitch results and an overinflated wage bill.
According to GiveMeSport, Lyon must meet stringent financial conditions to avoid relegation.
Additionally, Get French Football News reported that the Direction Nationale du Contrôle de Gestion (DNCG) will now oversee the club’s wages closely.
As L’Equipe previously reported, Lyon’s economic struggles are tied to its reliance on consistent Champions League qualification....Read Full Article [Click Here>]
With the club falling short of expectations, selling key players has become a likely option to address the deficit. However, even that might not be sufficient to restore financial stability.
The situation places significant pressure on John Textor, owner of Eagle Football Group, who controls an 87.7% stake in Lyon and holds a 45% share in Crystal Palace.
Earlier this week, L’Equipe revealed that Lyon appeared before the DNCG on November 15 to address their financial concerns.
The seven-time Ligue 1 champions, currently sitting fifth in the league, must urgently act to secure their top-flight status.
