Lyon's Financial Crisis: Provisional Relegation and Transfer Ban Devastate Fans

Olympique Lyonnais has been provisionally relegated to Ligue 2 for the next season,  mainly because of financial issues where their debts have increased from € 458m to € 508m. This decision has been approved by the Ligue de Football Professionnel (LFP) after the DNCG, the Professional Club Control Commission conducted a review, and this has left fans of the big French club disappointed. Lyon is fifth in Ligue 1 at the moment, and this may give them a Europa League qualification, but their financial status threatens to drop them to Ligue 2 no matter the team’s final finish.

The club owned by John Textor and his Eagle Football Holdings group which has stakes in Crystal Palace, RWD Molenbeek in Belgium, and Botafogo in Brazil, has been banned from transferring players. In addition to the provisional relegation, LFP has also stated that the club’s payroll will be closely monitored. The decision was made after Lyon management presented their financial situation to the DNCG. 

Nevertheless, Lyon remains the second team with the highest wage bill in Ligue 1 while they have not been able to finish in the top four since the 2020/21 season. They have only been burdened with the increased costs of player salaries in recent years. For Lyon to avoid the relegation, there is a need for the team to make some improvements financially. This could mean the sale of players like Rayan Cherki or Botafogo’s Thiago Almada, but such decisions would affect their goals of getting back to the UEFA Champions League, which is an essential way of increasing their revenues. 

Though the verdict is temporary, it is dangerous. A similar event was observed in the case of Girondins Bordeaux where they got relegated to the fourth tier because of financial woes. Lyon fans are disappointed with the news and are hoping that the club can fix their financial situation to avoid relegation to Ligue 1. 

It is not only Lyon that has been suffering from financial problems. Ligue 1 side Le Havre has also been given a suspension on the signing of players for a transfer fee under the new measures, demonstrating the increased financial sanction in French football. 

Over time, fans expect Lyon to stand up and fight for a place among the leading clubs in France. Ligue 1 tickets are available for those willing to cheer their teams up; moreover, you can buy Lyon tickets for the best prices at 1BoxOffice. Buy Ligue 1 tickets now at 1BoxOffice!