French football club Lyon has been handed a transfer ban and warned of potential relegation following a ruling by the financial watchdog, the Direction Nationale du Controle de Gestion (DNCG), on Friday. The sanctions come as the club battles significant debt, including salary supervision measures, aimed at addressing their financial troubles.
Despite the threat of provisional relegation if their financial situation does not improve, Lyon’s American owner, John Textor, expressed confidence in the club’s future. “I am not all worried,” Textor told reporters, insisting that the club’s financial health would stabilise.
The DNCG’s ruling follows scrutiny of Textor’s Eagle Football Holdings, which is the main shareholder in Lyon, as well as Premier League club Crystal Palace and Brazilian team Botafogo. The conglomerate faces net debt of €463.8 million, despite a reduction in its losses.
Textor maintained that he wasn’t concerned about the club’s long-term viability, stating that Lyon was set to generate significant revenue soon.
Textor sought to reassure Lyon supporters, dismissing the idea of a fire sale of star players. He stressed the club’s goal of securing Champions League qualification this season, highlighting that Lyon generates around €90 million annually from player sales.
Lyon currently sits fifth in Ligue 1, just one point outside the Champions League spots, heading into the international break.
