One of the jewels in the crown of French football are reportedly set for relegation from Ligue 1 due to a financial crisis.
Lyon, seven-time champions, will lose their top-flight status at the end of the season unless they improve their situation in the eyes of French football’s financial watchdog.
It would mark another hammer blow for the game in France after Bordeaux were demoted to the fourth tier due to bankruptcy this summer.
Lyon recently announced debts of £422million and have now been banned from signing players amid a looming possible relegation, according to L’Equipe and Get French Football News.
Crystal Palace co-owner John Textor majority owns Lyon through Eagle Football Holdings. He insisted a meeting with France’s National Directorate of Control and Management ‘went well’, but the watchdog seems to have disagreed.
French journalist Romain Molina has also claimed that ‘all Lyon players are on sale’ in a bid to reduce the club’s debts. They have also lost control of their payroll.
French giants Lyon are reportedly facing relegation unless they improve their finances
They recently announced debts of £422million and have now been banned from signing stars
Crystal Palace co-owner John Textor majority owns Lyon and reportedly wants to balance the books at the French side by selling his stake in the Premier League outfit
Many former Premier League stars call Lyon home. Their squad boasts Wilfried Zaha, Alexandre Lacazette, Nemanja Matic, Said Benrahma, Ainsley Maitland-Niles, and Jordan Veretout.
Other highly rated European stars such as Anthony Lopes, Corentin Tolisso, Rayan Cherki, Gift Orban, and Georges Mikautadze are also on their books.
Les Gones have been haemorrhaging money year-on-year and their financial model is based on consistent Champions League qualification.
However, they have not been in Europe’s elite competition since the 2019-20 season, when a side inspired by Memphis Depay and Bruno Guimaraes reached the semi-finals.
Their women’s team is one of the most successful in the world, having won 17 league titles and three Champions Leagues. The men’s team have won seven league titles, 14 domestic cups, and have been in the top flight continuously since 1989.
The Eagle Football Group portfolio owns stakes in Lyon, Palace, Botafogo of Brazil, FC Florida, and RWD Molenbeek in Belgium.
Textor believes that selling the 45 per cent stake in Crystal Palace as well as some Botafogo stars could help balance the books for Lyon, as per L’Equipe.
Lyon’s situation is not unique. Many clubs in France are struggling off the back of the Covid-19 pandemic and drastically decreasing TV rights revenue.
Lyon won seven consecutive league titles in the 2000s but PSG have been dominant since
Losing stars such as Kylian Mbappe means the French league’s appeal to broadcasters has diminished – and this has a knock-on effect on the revenue clubs are receiving
Bordeaux were relegated to the fourth tier after bankruptcy, with Andy Carroll joining them
France’s LFP (equivalent to the EFL) had hoped to sell their TV rights for around £835m for the 2024-2029 period.
However, nobody matched that price. In the end, DAZN paid around £344m, with BeIN Sports lumping in £84m – meaning the LFP barely gained half the funding they wanted, and an 11 per cent drop on the 2021-2024 period.
There are bonuses that the LFP can earn if its matches perform well on the airwaves – but there are also break clauses alongside that which could see funding withdrawn.
It does not help Ligue 1 that they have lost their major stars in recent seasons – namely Lionel Messi, Neymar, and latterly Kylian Mbappe.
Nor does it help the league’s appeal to broadcasters that PSG have won 10 of the last 12 titles, with Monaco (2016-17) and Lille (2020-21) the only exceptions.
Lyon, who sit fifth in Ligue 1 managed by relative newcomer Pierre Sage, are in the Europa League this season and do have lots of players they could offload.
That should have an reasonable impact on the transfer market in January and, long-term the future is unsettling for one of France’s grandest clubs.