French Ligue 1 club Olympique Lyon has been provisionally relegated to Ligue 2 by the French league’s National Directorate of Management Control (DNCG) due to financial irregularities. This decision follows a special audit by the DNCG, which uncovered unresolved financial backlogs related to the club’s transfer dealings and other operations. Lyon has been given until January to address these issues and avoid demotion to the second tier.
The DNCG also imposed a ban on Lyon making any signings during the upcoming January transfer window. Additionally, the financial watchdog will oversee the club’s player salaries, closely monitoring their compliance with financial regulations. These measures highlight the severity of the club’s financial crisis and the urgency required to restore stability.
Despite these setbacks, Lyon’s owner, John Textor, remains optimistic. Textor, who also holds stakes in Premier League side Crystal Palace and Brazil’s Botafogo, expressed confidence in the club’s ability to avoid relegation. He assured fans and stakeholders that measures have already been implemented to resolve the financial issues flagged by the DNCG.
“You shouldn’t just look at Olympique Lyonnais, but the fact that we are a group that owns several clubs,” Textor told French media.
“I’m confident in our figures and the good news is that the DNCG is independent, they are very intelligent people, accountants, financiers who can look at the figures…We’re going to generate several million dollars in cash over the next few months, and we’re in it for the long haul,” he added.
Olympique Lyon, five-time Ligue 1 champions, finds itself in a precarious position, with this being the latest in a series of financial challenges. Earlier, the DNCG had criticized the club for failing to provide adequate financial guarantees, a claim contested by Textor. The parallels with another French football giant, FC Girondins de Bordeaux, are concerning. Bordeaux, six-time Ligue 1 winners, suffered a dramatic fall from grace, eventually being relegated to the fourth tier after declaring bankruptcy and relinquishing their professional status.
Lyon’s storied history and status as one of France’s most celebrated clubs hang in the balance. The coming months will be critical as the club races to resolve its financial irregularities and secure its future in France’s top flight. Failure to comply with DNCG’s demands could see Lyon face an unthinkable demotion, a stark reminder of the financial pitfalls that can befall even the most successful football institutions.
