Lyon Relegated to Ligue 2 Due to Financial Issues

French club Lyon has been demoted to Ligue 2 due to financial difficulties. The club was provisionally demoted by the DNGC in November. Lyon officials, including owner John Textor, met with the DNGC but failed to convince them that the financial situation had improved enough to lift the punishment.

Last October, Eagle Football Group, which owns a 77% stake in Lyon, reported debts of £422m. Lyon expressed confusion over the decision and confirmed they would appeal, citing their financial capabilities and sporting success.

Lyon raised funds through player sales and released high earners in an effort to improve finances. They have the right to appeal the decision, and if upheld, Reims will replace them in Ligue 1. Lyon, with seven French titles, last played in the second tier in 1989.

Textor, also involved with other clubs, stated confidence in Lyon's financial position. Investments and stake sales have improved Lyon's financial outlook, ensuring resources for the future.

There are concerns about Textor's involvement with multiple clubs and potential breach of Uefa rules. Bordeaux faced a similar fate last year due to bankruptcy.