Lyon Faces Relegation Due to Financial Crisis

Olympique Lyon, a historic club in French football, is facing potential relegation to Ligue 2 due to severe financial difficulties, with reported debts nearing €508 million. The French football regulatory body, DNCG, has imposed a provisional relegation and a transfer ban, requiring the club to stabilize its finances within six months to avoid permanent demotion. Owner John Textor remains optimistic after discussions with the DNCG, despite the watchdog's contrasting assessment. Lyon has struggled with financial sustainability, failing to qualify for the Champions League since the 2019-20 season, which has exacerbated their debt issues. The club currently sits fifth in Ligue 1, but without immediate action to reduce its payroll and debts, it risks a fate similar to Girondins Bordeaux, which was relegated to the fourth tier due to financial mismanagement. Lyon's challenges highlight ongoing financial strains in French football, particularly among clubs with historical significance.