Financial mismanagement could see Olympique Lyon relegated to Ligue 2 at the end of the season if it fails to pay off its debts. a sanction from the Direction Nationale du Controle de Gestion (DNCG). The DNCG is the financial regulator of business dealings in French football and in addition to possible relegation, they have imposed a transfer ban and Lyon wages will be monitored.
The Ligue 1 club is owned by American businessman John Texter, who also owns Botafogo in Brazil and has a minority stake in Crystal Palace in the English Premier League. Although the transfer ban and monitoring take effect immediately, Lyon can avoid relegation if it can improve its financial situation. To do that, Textor has options such as selling his stake in Crystal Palace and/or making a profit on valuable players in the Lyon and Botafogo system, such as Ryan Cherki and Thiago Almada.
Despite a busy transfer summer, Lyon’s debts reportedly increased from €458 to €508 million causing their conditions to deteriorate. The upcoming transfer window will be crucial for Lyon and players like American midfielder Tanner Tessmann will now find themselves in the middle of the fray.
Lyon are currently on course for a European spot and are fifth in Ligue 1 and just five points ahead of a place in the Champions League. Creating a European spot would have a drastic positive impact on their finances, but if players are shuffled enough, there’s a chance they could fall out of that spot even if they avoid relegation by financial regulators.