French membership Lyon have been demoted to Ligue 2 due to the poor state of their funds.

The membership had been provisionally demoted by the DNGC, the physique which oversees the accounts of French skilled soccer golf equipment, in November.

Lyon officers together with proprietor John Textor, met with the DNGC on Tuesday however did not persuade the physique that the membership had sufficiently improved their monetary state of affairs to raise the punishment.

Final October, his Eagle Soccer Group, which owns a 77% stake in Lyon, introduced money owed of £422m.

Seven-time French champions Lyon raised round £45m with the gross sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester Metropolis in June in an try to enhance their funds.

Excessive earners similar to Alexandre Lacazette and Anthony Lopes have additionally been launched.

Lyon have the best to enchantment towards the choice. Ought to it stand, Lyon might be changed within the prime flight by Reims, who had been crushed within the relegation play-off by Metz.

Solely 5 groups have lifted extra French titles than Lyon’s seven, which they gained in successive seasons between 2002 and 2008.

The membership reached the Champions League semi-finals as lately as 2020 and haven’t performed within the second tier since 1989.

When the provisional punishment was handed down in November, Textor mentioned that there was “no probability” the membership can be relegated and reiterated his confidence earlier than Tuesday’s assembly.

“We’ve made a wide range of investments in current weeks,” he mentioned. “The whole lot is sweet financially.”

Textor can be the most important shareholder of Brazilian membership Botafogo and co-owner of Premier League membership Crystal Palace, although he agreed a deal to promote his 46% stake within the Eagles on Monday.

Palace certified for the Europa League by successful the FA Cup however their place is unsure as a result of Lyon additionally certified by ending sixth in Ligue 1.

Textor’s perceived involvement with each golf equipment might be in breach Uefa guidelines, which forestall a number of groups underneath one multi-club possession construction competing in the identical European competitors.

The Eagles hope Textor’s resolution to promote his stake to New York Jets proprietor Woody Johnson will keep away from that situation.

Final yr, six-time Ligue 1 champions Bordeaux needed to give up their skilled standing after being relegated from Ligue 2 to the French fourth tier due to chapter.