Due to poor financial management, Olympique Lyon could be relegated to Ligue 2 at the end of the season if it does not pay its debts following a sanction from the National Management Control Directorate (DNCG). The DNCG is the financial supervisor of commercial transactions in French football and has not only dictated possible relegation but also a transfer ban and Lyon’s salaries will be monitored.
The Ligue 1 club is owned by American businessman John Texter, who also owns Brazil’s Botafogo and has a minority stake in English Premier League side Crystal Palace. While the transfer ban and monitoring take effect immediately, Lyon can avoid relegation if they can improve their financial situation. To do that, Textor has options such as selling his stake in Crystal Palace and/or profiting from valuable players in Lyon and Botafogo’s system such as Ryan Cherki and Thiago Almada.
Despite a busy summer of transfers, Lyon’s debts increased from €458 million to €508 million, worsening their circumstances. The upcoming transfer window will be pivotal for Lyon and players like American midfielder Tanner Tessmann will be caught in the middle of the fray.
Lyon are currently on course for a European spot, sitting fifth in Ligue 1 and are just five points away from a Champions League spot. Achieving a European spot would have a drastic positive impact on their finances, but if players are shuffled around enough, there could be a chance they could fall from that spot even if they avoid relegation from financial regulators.
