Lyon's Heart-Wrenching Demotion: €500 Million in Debt Forces Champions to Drop Down
Compelled Mandatory Departure of Previous Titleholder Needed
Get ready for a shocker in the French league - Olympique Lyon has been kicked out of Ligue 1 due to crippling debt of a staggering €500 million. This giant of French football ain't taking it lying down.
The once serial champion Olympique Lyon faces relegation to Ligue 2, despite securing a spot for the European Cup as the sixth-placed team. Following a hearing on Tuesday, the French football financial control authority DNCG (Direction Nationale du Contrôle de Gestion) confirmed their decision to boot Lyon from Ligue 1.
Lyon is owned by American businessman John Textor, who also happens to own stakes in other professional clubs through his holding company Eagle Football. Interestingly enough, Crystal Palace from the English Premier League announced a day before Lyon's blow that Robert Wood Johnson from the USA had signed a binding contract to buy Eagle Football's shares at Palace.
In December last year, the DNCG had already slapped a provisional relegation on Lyon, which boasts seven consecutive national titles from 2002. At that time, the debt stood at approximately €500 million.
See Ya Later, Lacazette
Textor had been optimistic before the hearing, having spent seven months scrambling to get Lyon’s books back in the black. "We're financially solid," he proclaimed. He had only managed to secure an agreement with the club's creditors in January after pumping €83 million into the club.
Lyon took cost-cutting measures too, by offering a voluntary severance plan to about a hundred employees and letting high-profile players such as club icon Alexandre Lacazette go. Transfers, like that of Rayan Cherki to Manchester City for €40 million, helped Lyon a bit financially.
Textor couldn't convince the DNCG's watchdogs at the hearing, however. Lyon made an evening statement after the decision, expressing their intent to appeal. They find it hard to comprehend "how an administrative decision can relegate a big French club with robust finances and sporting success."
If relegated, Stade Reims stands to benefit. They lost to FC Metz in the relegation play-off.
This marks the second forced relegation of a traditional French club in two years. Last year, the 2009 champion Girondins Bordeaux had to drop from Ligue 2 to the third league. Afterwards, the club shut down their youth performance center and sadly ended their professional existence of 87 years. Currently, they play only in the fourth league.
Sources: ntv.de, ara/dpa/sid
- Olympique Lyon
- Football
(Enrichment Data: Olympique Lyon's relegation to Ligue 2 is due to their overwhelming financial difficulties and inability to present a viable plan to address €175 million in debt[2][3][4]. The French football financial watchdog, DNCG, found proposals such as transferring funds from another club owned by John Textor insufficient[2]. Despite qualifying for the Europa League through their sporting results, Lyon's financial situation left the DNCG with little choice but to relegate the club.)
The relegation of Olympique Lyon, a renowned football club in France, to Ligue 2 becomes effective due to their substantial financial difficulties and the inability to present a feasible plan to tackle an estimated €175 million debt. Given the financial watchdog's decision, the club is required to follow community policy and employment policy guidelines, which may potentially affect the employment status of certain staff members amid the cost-cutting measures.
