Due to financial mismanagement, Olympique Lyon could be relegated to Ligue 2 at the end of the season if they fail to pay off their debts after a sanction from the Direction Nationale du Controle de Gestion (DNCG). The DNCG is the financial overseer of business transactions in French soccer and they've not only handed down the potential relegation but also a transfer ban and Lyon's wages will be supervised.
The Ligue 1 club is owned by American businessman John Texter who also owns Botafogo in Brazil and has a minority stake in Crystal Palace in the English Premier League. While the transfer ban and monitoring are effective immediately, Lyon can avoid relegation if they're able to improve their financial situation. To do that, Textor has options like selling his stake in Crystal Palace and/or turning a profit on valuable players in the Lyon and Botafogo system such as Ryan Cherki and Thiago Almada.
Despite a busy summer of transfers, Lyon's debts reportedly rose from €458 to €508 million causing their circumstances to worsen. The upcoming transfer window will be critical for Lyon and players such as American midfielder Tanner Tessmann will now be caught in the middle of the fray.
Lyon are currently on track for a European spot sitting fifth in Ligue 1 and are only five points out of a Champions League place. Making a European spot would have a drastic positive impact on their finances, but if players are shuffled enough, there could be a chance that they fall out of that place even if they avoid relegation from financial regulators.
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