Lyon’s Relegation Appeal and Its Implications
Lyon is optimistic about reversing their relegation to Ligue 2, according to sources cited by ESPN. Their appeal hearing commenced on Wednesday morning before the DNCG, the organization that oversees the financial practices of French football clubs. This hearing holds significant implications for Crystal Palace, which is on the verge of participating in European competition for the first time in its history, having secured a spot in the Europa League after clinching the FA Cup in May. Should Lyon successfully remain in Ligue 1, they would retain their place in European football, potentially affecting Palace’s opportunity to compete in the tournament.
Financial Mismanagement and Appeal
The French football authority imposed a sanction on Lyon on June 24, leading to their relegation due to financial mismanagement. In response, Lyon has formally appealed the decision and is putting forth a revised financial strategy aimed at persuading the committee to overturn the ruling. At the heart of the financial turmoil is a staggering €541 million ($634 million) debt and an unsustainable wage bill, which far exceeds their revenue streams. To regain their Ligue 1 status, Lyon must inject €100 million into the club and provide an additional €100 million as a financial guarantee for the next two seasons.
Leadership Changes and Ownership Ties
John Textor, who controls Lyon through the Eagle Football Group and serves as the club’s president, recently stepped down from his position due to internal pressures. Michele Kang, a prominent business figure and shareholder in Eagle Football Group, has taken over the leadership role. Textor also has ties to Crystal Palace through his ownership shares in the same group and is currently negotiating a sale to Woody Johnson, owner of the New York Jets, for £190 million ($254 million), although this transaction has yet to be officially announced.
Upcoming Decisions and Team Preparations
A decision regarding Lyon’s appeal is expected by Wednesday evening. If the DNCG maintains their ruling, Lyon will be forcibly removed from the Europa League, as UEFA has stipulated that they cannot participate in European competitions under such circumstances. However, Lyon retains the right to contest this outcome with another appeal to the French Olympic Committee (CNOSF), and failing that, they could take their case to a tribunal as a final recourse.
While these legal proceedings unfold, Lyon’s first team, which consists of 26 players, commenced their preseason training on Tuesday, signaling their preparation for the upcoming season despite the uncertainty surrounding their league status.
