Source: REUTERS/Heiko Becker
[Saba Sports News] Recently, the French National Control and Management Agency (DNCG) decided to ban Lyon from making signings during the winter transfer window due to debt issues, and their salary expenses will also be restricted. As a precaution, if Lyon fails to improve their financial situation, they will be relegated to Ligue 2 at the end of the season. In a recent announcement, Lyon’s debt reached 505.1 million euros. According to French media, Lyon is facing severe penalties due to a financial crisis and is confronting a daunting challenge of approximately 200 million euros in funding gaps. DNCG has imposed strict penalties on Lyon, requiring the club to improve its financial status before the end of the season, or else they will be relegated to Ligue 2. This punishment starkly contrasts with the previously optimistic attitude displayed by the club’s management, as club owner John Textor still expressed confidence in the data after the hearing. To resolve the financial difficulties, the Eagle Group plans to inject 75 million euros by December 2024 and promises an additional investment of 100 million euros in early 2025. Funding sources include equity financing, player transfer income, and potentially selling shares in Crystal Palace. Despite the Lyon club management’s optimistic attitude before and after the DNCG hearing, the latter has still imposed severe penalties, including temporary relegation.