Olympique Lyonnais provisionally relegated by the DNCG – sanction upheld by the FFF Appeals Committee

On Friday 15 November 2024, the French National Management Control Department “Direction nationale du contrôle de gestion” (DNCG) handed down a decision demoting Olympique Lyonnais to Ligue 2 at the end of the 2024/2025 season.
The Commission, which is responsible for ensuring the good governance of French professional football clubs, could only note the club’s poor financial situation and sanctioned a provisional demotion until its finances improved.
According to a recent press release, the club’s debt has been estimated at almost 505.1 million euros.
In order to deal with these liabilities, the DNCG has ordered Olympique Lyonnais to restrict its wage bill.
These measures provoked a strong and immediate reaction from the club’s governing bodies.
Mr. John Textor, majority shareholder, appeared optimistic following the club’s mid-season interview, even announcing that he was confident about the figures posted.
“At the DNCG, there are intelligent people but they work within a system and don’t want to look at what we’re doing as a whole,” lamented John Textor. “I find the idea of someone telling you how to run your business strange,” he added.
The American investor thus discovered a regulatory system specific to French sport, designed to guarantee the sound financial health of clubs throughout the season, but which is particularly restrictive for foreign investors.
The auditors have also voiced their concerns, as they are considering the impossibility of certifying the club’s accounts for its last financial year.
Although all the indicators are now in the red, the management of Olympique Lyonnais is not losing face and is seeking to reassure: Managing director Laurent Prud’homme spoke to the team’s employees on Tuesday 19 November 2024, promising a turnaround in the situation and claiming that these difficulties were the result of the drop in TV rights for Ligue 1.
Olympique Lyonnais coach Pierre Sage, speaking pragmatically about the consequences of such a sanction for the club, says it was clearly necessary to reduce the headcount.
Pierre Sage points out that such decisions will be taken intelligently, in view of the team’s balance, and he wants to reassure fans, to whom he is sending the following message: any departure will be thought through and apprehended not only from a financial point of view, but also from a sporting point of view.
On the players’ side, reactions are equally tempered. Nemanja Matic, who joined Olympique Lyonnais at the start of 2024, was interviewed by the press and said that it was not up to the players to worry about such issues, preferring to concentrate on team cohesion.
Faced with these heavy sanctions, the Rhone club appealed the DNCG’s decision: on 10 January, OL was able to put forward new arguments to convince the French Football Federation (FFF) Appeals Committee[1].
The club’s aim was to present new financial information in order to challenge the restrictions on its wage bill and the ban on recruitment.
The forthcoming stock IPO of the holding company Eagle Football, parent company of Eagle Football Group, could put the club’s finances on a sounder footing. In preparation for the flotation, the investment fund UCEA Capital Partners has raised around €38.5 million. A share issue of nearly €100 million has also been launched. [2]
The DNCG has deemed the IPO unlikely to succeed, but Eagle Football has secured global investment bank UBS to lead the deal in the first quarter of 2025. [3]
Still aiming to improve his club’s financial health, John Textor, a 45% shareholder in Crystal Palace, is reportedly on the verge of selling his shares to an investor. However, the sale would require the agreement of the Premier League before Olympique Lyonnais could benefit[4].
OL and its directors were also able to point out to the FFF Appeals Committee the sale of two players who brought in more than €10 million for the club. Eagle Football Group is also reportedly considering the sale of certain players, notably to Botafogo FC. [5]
The wage bill has also been reduced following the departure of their goalkeeper. Two major player contracts are due to expire next spring, which will once again help to reduce Olympique Lyonnais’ costs[6].
The Rhone-based club is working hard to reduce its debt and is reportedly considering further contract sales before the end of the winter mercato. Lyon’s coach said: “We’ll mainly be looking for ways to get out.” [7]
All these points were presented to the Appeals Committee.
On Friday 10 January, the FFF Appeals Committee upheld the sanctions imposed on the Lyon club, a decision that did not come as a surprise.
The club’s directors issued a statement on Friday evening, declaring that “even before formulating its appeal, Olympique Lyonnais was aware that this committee rarely, if ever, overturns DNCG decisions“.
The Club would like to thank the Appeal Committee for giving it the opportunity to present its new financial elements, such as the injection of cash, the sale of Crystal Palace shares, the departure of several players and the IPO. [8]
However, these arguments were not sufficiently convincing.
For the time being, Olympique Lyonnais have not announced whether it intends to appeal this latest decision.
[1] “L’OL a fait appel des lourds sanctions de la DNCG et comparaitra le 10 janvier”, L’Equipe, H.G., 5 January 2025
[2] “Le Groupe Eagle, propriétaire de l’OL, lève 40 millions de dollars avant son IPO”, Ouest France, 22 November 2024
[3] “Comment l’OL compte convaincre la commission d’appel de revoir les sanctions de la DNCG”, L’Equipe, Hugo Guillemet, 5 January 2025
[4] “John Textor sur le point de céder ses parts de Crystal Palace, une bonne nouvelle pour l’OL ?”, Le Parisien, 7 January 2025 ; “Bonne nouvelle pour l’OL, Textor franchit une nouvelle étape dans la vente de Crystal Palace”, RMC Sport, Jean-Guy Lebreton, 6 January 2025.
[5] “Mercato : L’OL officialise le départ de Gift Orban en Bundesliga”, RMC Sport, HJ, 2 January 2025
[6] “Comment l’OL compte convaincre la commission d’appel de revoir les sanctions de la DNCG”, L’Equipe, Hugo Guillemet, 5 January 2025
[7] « Là on sera surtout dans une logique de sortie » : malgré la DNCG, l’OL pourrait vivre un mercato moins déstabilisant qu’à l’été », L’Equipe, Regis Dupont, 4 January 2025.
[8] « La commission d’appel de la FFF maintient les sanctions, l’OL réagit », L’Equipe, 10 January 2025
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