Seven-time French champions Lyon, owned by American businessman John Textor, have been relegated to the second tier of French soccer as a result of membership’s monetary issues, the French Skilled League introduced (LFP) announced on Tuesday.
Lyon plan to enchantment the choice, sources informed ESPN.
Textor and Mickael Gerlinger, the membership’s director of soccer, had been interviewed by The Nationwide Directorate of Administration Management (DNCG), the French monetary regulators answerable for conserving checks on all skilled golf equipment’ accounts and monetary well being.
In November, the DNCG provisionally relegated Lyon due to a €175 million ($203.34 million) debt and no clear plan from the membership on the best way to scale back it. A switch ban was additionally imposed within the January switch window.
Textor’s proposal to switch funds from Botafogo, one other membership he owns in Brazil, to Lyon with a view to cowl the money owed was denied.
Nonetheless, Lyon bosses had been assured on Tuesday that they’d be capable of satisfactorily reply all questions and supply explanation why they shouldn’t be relegated to Ligue 2.
Earlier this month they raised €42.5 million from the switch of Rayan Cherki to Manchester City.
And on Monday, Premier League facet Crystal Palace announced that New York Jets proprietor Woody Johnson signed “a legally binding contract” to purchase Textor’s shares. Textor bought his 43% stake within the London membership for $254 million.
However the membership has been beneath rising strain.
Two years in the past, the DNCG determined to watch the membership’s switch actions, saying its strikes available on the market can be restricted beneath “a framework for wage prices and switch indemnities.”
Lyon received their seven league titles from 2002-08 and reached the Champions League semifinals in 2020.
Lyon narrowly misplaced to Manchester United within the Europa League quarterfinals and missed out on a money windfall once they didn’t qualify for subsequent season’s Champions League after ending sixth in Ligue 1.
Data from The Related Press was used on this report.