Lyon given provisional demotion to Ligue 2 over finances
French club Lyon will be relegated to Ligue 2 at the end of the season and banned from signing players in January if they do not improve their financial situation.
Lyon owner John Texter is also a co-owner of Premier League club Crystal Palace and the largest shareholder of Brazilian club Botafogo.
His Eagle Football Group recently announced debts of £422m.
France’s professional football club accounts regulator DNGC made the ruling on Friday.
Lyon’s wages will also be regulated by the DNGC.
Seven-time French Ligue 1 champions Lyon are likely to have to offload several key players in January to clear their books and maintain top-flight status.
According to reports, American Texter could help manage debt by selling its stake in Crystal Palace or offloading Botafogo players.
Lyon is fifth in Ligue 1 and ninth in the Europa League.
