Lyon Football Club Faces Relegation
In a significant setback for the renowned Lyon football club, the French Professional League (LFP) confirmed their relegation to the second division due to ongoing financial difficulties. This announcement, made on Tuesday, highlights the serious implications of the club’s mounting debt, which stands at €175 million (approximately $203.34 million).
Ownership Scrutiny and Financial Challenges
Ownership under American businessman John Textor has come under scrutiny as Lyon navigates these financial challenges. Despite finishing sixth in Ligue 1 last season and making a commendable run to the quarterfinals in the Europa League, Lyon lacks a viable strategy to rectify their financial situation, which has raised alarms among the French financial regulatory body, the National Directorate of Management Control (DNCG).
Textor and the club’s football director, Mickael Gerlinger, were recently scrutinized during a session with the DNCG, who are responsible for overseeing the fiscal health of professional football entities in the country.
Temporary Relegation and Financial Maneuvers
In November, the DNCG temporarily relegated Lyon due to these financial woes, and a suggested transfer of funds from Textor’s other investment, Botafogo—another football club he owns in Brazil—was rejected as a means to alleviate the club’s debt.
Management’s Confidence Despite Challenges
This announcement arrives on the heels of Textor’s sale of a 43% stake in the English Premier League club Crystal Palace, a move that could have raised expectations about financial recovery, but evidently did not sway the DNCG. Lyon’s management has expressed confidence in their ability to challenge the decision, citing the recent €42.5 million generated from the transfer of player Rayan Cherki to Manchester City as evidence of their financial maneuvering.
However, despite these assertions, the DNCG maintained its stance, solidifying Lyon’s relegation to Ligue 2, thus marking a challenging chapter in the club’s rich history as seven-time champions of France.
