The financial crisis at Lyon, the French club controlled by John Textor, has led to its relegation to the second division of the French Championship, as announced by the National Directorate of Control and Management (DNCG) of the French Professional Football League (LFP) on June 24, 2025. The decision stems from a 25.7 million euro deficit in the 2023/24 season and a 500 million euro accumulated debt by Eagle Football Group, Textor’s holding company, catching European football off guard. The businessman, also the owner of Botafogo’s SAF, attended a critical hearing in France but failed to convince regulators with the financial guarantees presented. The club, once a seven-time French champion, now faces an uncertain future in Ligue 2, though it has announced plans to appeal the decision. The situation highlights Textor’s challenges in managing multiple clubs and raises questions about the multiclub ownership model.
The decision’s impact extends beyond the pitch. The DNCG, responsible for overseeing the finances of French clubs, had already imposed restrictions on Lyon, such as a ban on signings in the January 2025 transfer window. The hearing with Textor was seen as a last chance to avoid harsher penalties.
- Significant deficit: Eagle Football Group recorded losses of 25.7 million euros last season.
- Accumulated debt: The holding company owes around 500 million euros, worsening the crisis.
- Prior penalties: Lyon was already under restrictions, including a ban on new player signings.
The relegation news shocked fans and analysts, who are now awaiting the club’s and its owner’s next steps.
Critical hearing and Textor’s promises
John Textor arrived at the LFP headquarters in Paris minutes before the DNCG hearing, avoiding the press and briefly commenting on Botafogo’s performance in the Club World Cup. In statements to the French newspaper L’Équipe, the businessman claimed to maintain constant dialogue with the regulator, emphasizing that he presented a detailed business plan. According to Textor, Eagle Football Group allocated significant resources to ensure Lyon’s sustainability, but the arguments were insufficient to reverse the initial relegation decision, issued in November 2024.
The meeting was pivotal. The DNCG demanded financial guarantees of at least 100 million euros for the 2025/26 season, an amount Lyon failed to convincingly secure. The lack of clarity in budget projections and the inability to reduce the deficit heavily influenced the regulator’s assessment.
Crystal Palace sale as a partial solution
To address the crisis, Textor resorted to selling his 43% stake in Crystal Palace, an English Premier League club, for 190 million pounds (approximately 1.4 billion reais). The transaction, finalized with Woody Johnson, owner of the New York Jets, was driven by a UEFA rule prohibiting clubs with the same owner from competing in the same European competition, as both Lyon and Crystal Palace qualified for the 2025/26 Europa League.
The sale provided financial relief but did not fully resolve Lyon’s issues. Textor stated that part of the funds was used to pay down Eagle Football Group’s debts, with another portion invested in the holding to meet UEFA and DNCG requirements. However, the absence of concrete guarantees to cover the 100 million euros demanded by the DNCG was the primary reason for the relegation.
History of financial troubles
Lyon has been grappling with financial difficulties for years, exacerbated under Textor’s management since Eagle Football Group took control. The 2023/24 season was particularly challenging, with revenue losses due to early eliminations in European competitions and the absence of a Champions League spot. The sale of key players, such as Rayan Cherki to Manchester United, provided some relief but was insufficient to balance the books.
The DNCG, known for its strictness, had already warned Lyon in 2024, imposing sanctions like a transfer ban and tight control over the wage bill. The decision to relegate the club reflects the severity of the situation and the lack of confidence in Textor’s financial projections.
Reactions in the football world
Lyon’s relegation sparked immediate reactions in France and beyond. Fans, already dissatisfied with Textor’s management, organized protests on social media and near the Groupama Stadium. The French press highlighted the irony of a historically dominant club, which ruled Ligue 1 in the 2000s, now facing the second division due to administrative issues.
- Furious fans: Social media protests criticize Textor’s management and demand changes.
- Critical press: Outlets like L’Équipe point to flaws in Eagle’s financial strategy.
- Rivals watching: Clubs like PSG and Monaco monitor the situation, which may impact the transfer market.
- Botafogo concerns: Lyon’s crisis raises questions about Textor’s management of the Brazilian club.
Analysts suggest that the relegation could have lasting consequences, including loss of sponsorships and devaluation of the squad.
Multiclub management under scrutiny
Eagle Football Group, which also controls Botafogo and RWD Molenbeek in Belgium, faces criticism for its multiclub management strategy. In Belgium, former player Franky Van der Elst criticized Textor for sending “third-tier” players to Molenbeek, which failed to gain promotion to the top division. Lyon’s situation fuels doubts about Textor’s ability to manage multiple clubs simultaneously.
In Brazil, Botafogo enjoys a contrasting moment, with recent successes like the 2024 Brasileirão and Libertadores titles. However, the SAF faces challenges, such as delays in publishing 2024 financial statements, prompting notifications from the CBF. Lyon’s crisis may increase pressure on Textor to balance his investments.
Lyon’s next steps
Lyon announced it will appeal the DNCG’s decision, a process that could take weeks and requires presenting new financial guarantees. Textor, set to return to the United States to follow Botafogo in the Club World Cup round of 16, has delegated the task to his legal team in France. The club also plans to sell assets, such as players, to ease financial pressure.
Thiago Almada’s stay, a former Botafogo star and current Lyon standout, was confirmed by Textor, who ruled out negotiations with Benfica. The decision reflects a strategy to retain key players despite the crisis.
Future investments in Eagle
Despite the challenges, Textor continues negotiations with investors to bolster Eagle Football Group. Sportsbank, a sports investment bank, announced in August 2025 its intent to inject significant funds into the holding, focusing on clubs like Botafogo and Lyon. Another group, comprising American and Saudi investors, has also shown interest in acquiring Eagle shares.
These deals, still in the due diligence phase, could provide a way out of the financial crisis but hinge on regulatory approval and Textor’s ability to meet DNCG requirements.
Outlook in the European market
Lyon’s relegation also reflects the growing rigor of European authorities regarding club financial management. UEFA, which previously pressured Textor to sell his Crystal Palace stake, has tightened oversight of multiclub ownership models. The DNCG, meanwhile, signals its readiness to impose severe penalties, even on traditional clubs.
Lyon’s situation serves as a warning to other indebted European clubs, particularly those under international holding companies. Textor’s ability to reverse the relegation will be a critical test of his credibility in global football.