Lyon relegated to French soccer's second tier amid ongoing financial problems
FILE - John Textor, Chairman of Eagle Football Holdings, speaks during the FT Business of Football Summit in London, Thursday, Feb. 29, 2024. (AP Photo/Kin Cheung, File)
PARIS (AP) — Seven-time French champion Lyon was relegated to the second tier on Tuesday because of ongoing financial irregularities.
The decision followed an audit of the club's finances by the French league's soccer watchdog, known as DNCG. French sports daily L'Equipe estimated Lyon's current debt at 175 million euros ($203 million). Lyon was expected to appeal the decision.
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The decision comes after the DNCG had already provisionally relegated Lyon to Ligue 2 in November, with the club reporting at the time that it had more than 500 million euros ($581 million) of debt. A transfer ban was also imposed in the January transfer window.
Lyon is owned by American businessman John Textor, who has stakes in Brazil's Botafogo and Premier League team Crystal Palace.
Textor was present for the hearing in Paris on Tuesday. He had been optimistic it would be successful for Lyon, which has been trying to balance the books.
On Monday, Premier League side Crystal Palace announced that New York Jets owner Woody Johnson signed 'a legally binding contract' to buy Textor's shares. Textor has a 43% stake in the London club. Reports have placed the price between $220 million and $260 million.
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Two weeks ago, Lyon received a much-needed cash injection by selling coveted playmaker Rayan Cherki for 36 million euros.
But the club has been under growing pressure.
Two years ago, the DNCG decided to monitor the club's transfer activities, saying its moves on the market would be limited under 'a framework for wage costs and transfer indemnities.'
Lyon won its seven league titles from 2002-08 and reached the Champions League semifinals in 2020.
Lyon narrowly lost to Manchester United in the Europa League quarterfinals and missed out on a cash windfall when it failed to qualify for next season's Champions League after finishing sixth in Ligue 1. ___
AP soccer: https://apnews.com/hub/soccer
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