Lyon Provisionally Relegated To Ligue 2 And Hit With Transfer Ban

The news came down on Friday that the French National Control and Management Committee (DNCG) has decided to temporarily demote Olympique Lyonnais from Ligue 1 to Ligue 2 in light of the club’s financial situation.

Lyon has received a significant penalty from the DNCG (Direction Nationale du Contrôle de Gestion), the financial oversight body for French football. The John Textor-owned Ligue 1 club faces provisional relegation to Ligue 2, along with a transfer ban and the oversight of their wage expenditures.

This outcome was anticipated given that the Ligue 1 club’s debt has reportedly increased from €458 million to €508 million.

Textor reportedly informed the DNCG today that Lyon would be able to sell players or players from Botafogo, which is also part of the Eagle Football Group portfolio, along with a 45% stake in Premier League club Crystal Palace, to stabilize their finances.

Although Lyon owner John Textor was very positive at the end of the meeting on Friday, the DNCG took a different view of the nature of the discussions with the American executive.

Indeed, if Lyon’s financial situation does not improve by the end of the season, the Rhone club will be demoted to Ligue 2.

In the meantime, the DNCG has decided to restrict the wage bill and impose a ban on recruitment.

Les Gones may be compelled to sell some of their most valuable players this winter transfer window, potentially including France U21 international attacking midfielder Rayan Cherki (21) and Belgian international winger Malick Fofana (19), possibly at lower prices.