Lyon descended: financial problems in French football

Lyon descended: financial problems in French football

On Tuesday, the seven -time French champion Lyon was graded into the second division due to persistent financial irregularities. This decision was followed by an examination of the club finances by the Football Association DNCG, which is responsible for monitoring in France. According to the French sports newspaper L’Equipe, Lyon's current debt height is estimated at 175 million euros ($ 203 million). Lyon is expected to appeal against the decision.

previous gradations and transfer bans

The decision comes after the DNCG Lyon temporarily graduated into Ligue 2 in November. At this point, the association reported debts of more than 500 million euros ($ 581 million). In January, a transfer ban was also imposed for the association.

owner and sales negotiations

Lyon belongs to the American businessman John Textor, who also holds shares in the Brazilian Club Botafogo and the Premier League team Crystal Palace. Textor was present at the hearing in Paris on Tuesday and was optimistic that the decision for Lyon would be positive while the club tried to get the finances under control.

Sale of shares and player transfers

On Monday, the Premier League Club Crystal Palace announced that the owner of the New York Jets, woody johnson , "a legally binding contract" for the purchase of textors. Textor holds 43 % of the shares in the London club, and reports that the price is between $ 220 and $ 260 million.

financial bottlenecks and pressure on the club

Two weeks ago, Lyon received urgently needed financial support from the sale of the coveted playmaker Rayan Cherki for 36 million euros. Nevertheless, the association is under increasing pressure.

monitoring of transfer activities

Two years ago, the DNCG decided to monitor the club's transfer activities and explained that the movements on the market would be restricted under a “framework for wage costs and transfer earnings”.

success in club history

Lyon won his seven league rates between 2002 and 2008 and reached the semi -finals of the Champions League in 2020. The association narrowly lost to Manchester United in the quarter -finals of the Europa League and missed a lucrative source of income when it could not qualify for the Champions League of the next season after taking sixth place in Ligue 1.