Seven-time French Champion Lyon Risks Relegation To Second Tier If Finances Are Not Rectified

Seven-time French champion Lyon risks relegation to second tier at end of season and has been hit with a transfer ban because of financial irregularities.

decision to provisionally relegate Lyon to Ligue 2 followed an audit of club's finances by French league's soccer watchdog, known as DNCG.

DNCG decided that Lyon's financial situation must improve by end of season, and no signings can be me in January transfer window. DNCG will also oversee players' salaries.

Lyon is owned by American businessman John Textor, who also has stakes in Premier League team Crystal Palace and Brazil’s Botafogo.

Textor h sounded confident after presenting club’s case to DNCG on Friday afternoon, reportedly saying that “ meeting went well” and “I am confident in our figures.”

Fifth-place Lyon reported earlier this month that it has a financial debt of 505 million euros ($532.6 million), and it means former Champions League semifinalist may have to sell some of its best players, such as 21-year-old midfielder Rayan Cherki, in January.

High earners, such as club stalwarts Alexandre Lacazette and Corentin Tolisso, may also have to leave.

DNCG ruled in July last year that Lyon did not provide sufficient financial guarantees, and Textor hit back at DNCG's decision to monitor club’s transfer activities last season .

Lyon's situation echoes what happened to Bordeaux, anor storied club. six-time French champion is now languishing in fourth tier of French soccer.

Bordeaux, swamped by 118 million euros ($128 million) of debt, has closed its youth acemy, women’s division and most ministrative offices. It has filed for bankruptcy and renounced its status as a professional sports club.