French Lyon Regulated to Ligue 2 After Financial Struggles

On Friday, French club Lyon were officially regulated to Ligue 2 from Ligue 2, in addition to banning from making any transfers during the upcoming winter transfer window due to their financial struggles. 

The National Directorate of Management Control (DNCG) announced its decision to the football club owned by American businessman John Textor after a hearing on Friday.

If Lyon are to avoid being relegated to France's second tier by the DNCG at the end of the season, they will need to demonstrate a much healthier economic outlook.

Furthermore, the club have to announce a limit on the budget of the salaries of the team's players. 

Textor said after the meeting: "The meeting went well. We have no problems with the continuity of the model or with financial viability," Textor said after the hearing.

The American businessman will also show the documents he presented to the DNCG on Saturday. 

Textor, who also owns shares in English Premier League side Crystal Palace and Brazilian top league side Botafogo, suffered from difficulties in managing the French club financially. It was reported that Lyon's debt is up to €505.1 million.