French club Lyon, burdened with debt, has been slapped with a transfer ban and a provisional relegation threat by the Direction Nationale du Contrôle de Gestion, France’s financial watchdog, owing to financial troubles.
The DNCG imposed the sanctions, including salary supervision, on Friday, warning of relegation from Ligue 1 if the club’s financial health does not improve. Despite Lyon’s precarious position, American owner John Textor expressed confidence in the club’s future. “I am not at all worried,” said Textor, whose Eagle Football Holdings owns Lyon, Crystal Palace, Brazil’s Botafogo and Belgian club Molenbeek.
Lyon is operating under the handicap of a net debt of €463.8 million, as it has reduced its net losses. “Several hundred million” is expected to come in in the coming months as cash flows start to come from Botafogo and Molenbeek, said Textor.
However, auditors raised flags over the reliability of some of those revenue streams, casting aspersions on account certification. In an attempt to reassure fans, Textor vowed Lyon would avoid a fire sale of key players, adding: “The goal is to reach the Champions League this year.”
Lyon currently lies fifth in Ligue 1, one point off the Champions League qualification zone.
