Premier League alerted as Lyon forced to sell to avert sanctions

Tom Weber

Updated: 13 Nov 2024 17:19 GMT
3 min read

Olympique Lyon are set for a meeting with France's financial watchdog to discuss the club's worrying economic situation, according to French media.

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The Ligue 1 giants have been operating at a loss for several years, with the club's financial model heavily reliant on Champions League qualification. But with Lyon not having featured in Europe's premier competition since 2019/20, this risky approach is now coming back to haunt the club.

According to L'Equipe, Lyon's financial situation has become so problematic that they have been summoned before the Direction Nationale du Controle de Gestion (DNCG) to explain how they are going to get out of this mess.

Lyon are said to be relaxed about the situation, but outside observers believe that this matter is anything but trivial and could entail heavy sanctions if club chiefs fail to convince the financial watchdog.

The most radical, albeit unrealistic - at least according to journalist Romain Molina - punishment could see Lyon demoted to Ligue 2 given the severity of the issues.

Lyon set for firesale

The argument Lyon will put forward is that potential sales will put them on a better financial footing by the end of the season. The Ligue 1 side aim to offload several star players, while there could also be major departures from affiliate club Botafogo to raise funds.

Additionally, it is claimed, that the sale of Eagle Group's 45 per cent share in Crystal Palace will aid Lyon's plans. However, there is no guarantee that this will be enough to persuade the DNCG.

Indeed, RMC reports that potential departures of star players such as Rayan Cherki and Malick Fofana won't be enough to solve the issue, which means that Les Gones will either have to embark on a veritable firesale or face sanctions.

Other players linked with an exit in recent times have been Gift Orban, Maxence Caqueret and Said Benrahma, all names that could potentially be of interest to Premier League clubs, so English sides will certainly be keeping close tabs on developments in Lyon.

The problem, of course, is that clubs will know how desperate Lyon are for funds. As pointed out by Vincent Chaudel, the Director of the Sports Business Observatory: “When everyone knows that you have to sell, it is rarely [the time] to make the best sales.”