French side Olympique Lyonnais RELEGATED to Ligue 2, slammed with transfer ban following failure to pay off debts

Olympique Lyonnais have been slammed with a recruitment ban and a provisional relegation to the Ligue 2, after failing to pay off debts.

French side Olympique Lyonnais RELEGATED to Ligue 2, slammed with transfer ban following failure to pay off debts

Olympique Lyonnais have been handed provisional relegation and a transfer ban (via Reddit)

Ligue 1 giants Olympique Lyonnais have been handed a provisional relegation to the French second division, owing to major financial issues. The French side has also been slammed with a transfer ban, starting January 2025.

Olympique Lyonnais will not be able to make any new signings in the upcoming January transfer window after having failed to pay off debts worth €508 million. They will also be relegated to the Ligue 2 at the end of the 2024–25 season if they fail to address their financial issues. 

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The punishment was announced by the National Directorate of Management Control (DNCG) after they investigated the club’s financial books. Alongside the recruitment ban, the French club will have their wages supervised by the DNGC. 

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The club is controlled by Eagle Football Group, a consortium owned by American businessman John Textor. He also owns a majority stake in three other clubs, including Crystal Palace, Botafogo, and RVD Molenbeek. 

The club had spent around €145 million in the summer transfer window and might now need to offload several players in order to clear their debts. Textor might also have to sell the majority of his stakes that he owns in several clubs. This includes his 45 percent stake in Crystal Palace.

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Lyon has been performing well this season. They are currently in the 5th position on the Ligue 1 table with 18 points. In case they fail to manage their finances, the club might face a similar fate to that of Girondins de Bordeaux. Bordeaux has been relegated to the fourth division. 

Olympique Lyonnais owner John Textor blames club’s ‘enemies’ amid recent financial struggles 

In a recent press conference, Lyon owner John Textor blamed rival French clubs and the Ligue 1 authorities. It comes amid fears of Lyon being relegated due to financial issues. He labeled rival clubs as ‘enemies’ while expressing confidence at Lyon’s financial figures. 

Olympique Lyonnais owner John Textor
Olympique Lyonnais owner John Textor slammed the club’s rivals (via Yahoo Sports)

Textor exclaimed that he trusts independent authorities like the DNCG but noted that they face a lot of pressure. He pointed to the club’s enemies, including members among the board of directors as well as the Ligue 1 authorities. Moreover, he added that the current punishment is closely linked to a plan by a ‘big’ club with Qatari owners, pointing fingers at PSG. 

I am confident in our figures. But we have a lot of enemies, you know, on the board of directors, in the league, a big club from Qatar.

John Textor to reporters (H/T Goal)

Lyon will now have to raise some vital funds to save themselves from relegation to the second division. In order to do this, the club might have to sell some of their key players. Midfielder Rayan Cherki could be on his way out, with Real Madrid and Liverpool interested.