Seven-time French champions Lyon, owned by American businessman John Textor, have been relegated to the second tier of French football due to the club's financial problems, the French Professional League announced (LFP) announced on Tuesday.
Lyon, who finished sixth in Ligue 1 and reached the quarterfinals of the Europa League last season, plan to appeal the decision, sources told ESPN.
Textor and Mickael Gerlinger, the club's director of football, were interviewed by The National Directorate of Management Control (DNCG), the French financial regulators in charge of keeping checks on all professional clubs' accounts and financial health.
In November, the DNCG provisionally relegated Lyon because of a 175 million ($203.34 million) debt and no clear plan from the club on how to reduce it. Textor's proposal to transfer funds from Botafogo, another club he owns in Brazil, to Lyon in order to cover the debts was denied.
Tuesday's decision comes a day after Textor sold a 43% stake in English Premier League club Crystal Palace.
However, Lyon bosses were confident on Tuesday that they would be able to satisfactorily answer all questions and provide reasons why they should not be relegated to Ligue 2. Earlier this month they raised 42.5 million from the transfer of Rayan Cherki to Manchester City.
But their explanations were not enough for the DNCG, who decided to stick with their original decision and confirm Lyon's relegation.
