Lyon have until 4th July to provide documentation or face punishment for financial irregularities

RMC Sport report that Ligue 1 side Lyon have until 4th July to provide French football’s financial watchdog – the DNCG – with additional documentation to provide the necessary guarantees to secure next season’s budget or else face consequences which could include relegation to Ligue 2 for financial irregularities.

John Textor’s team had concluded a mercy dash to put together a new budget for French football’s financial watchdog – the DNCG – in an attempt to get through the financial checks by the regulator required in order to have your 2023/24 campaign budget validated for the forthcoming season.

This new budget was put together and sent just 24 hours before the club’s hearing in front of the DNCG – the governing body did not appreciate the lack of time they were given to review the new materials.

The new budget presented (clearly revised downwards) by the American investor would allow him not to have to inject the €60m requested in writing a few days earlier by the DNCG. The plan relies on higher-than-expected player sales with associated salary savings, fewer player purchases, and miscellaneous savings.

The women’s team, with the associated savings in operating costs, falls within this framework. Just like the proposed sale of the American subsidiary of OL Reign.

Textor holds firm, but the DNCG is now demanding supporting documentation that demonstrates that the cost-saving measures that the Florida-based businessman wants to make are credible – he must provide these by 4th July.

The plan requires the sale of €70m worth of players, which was already part of ex-Lyon President Jean-Michel Aulas’ initial budget.

A source close to the situation told L’Équipe: “We want to convince the DNCG about the credibility of our plan.”

If Textor fails to convince the DNCG of his plan, the watchdog is likely to sanction the club financially, rather than with a sporting sanction (i.e. points deduction or relegation).

GFFN |

 

More European Football News