John Textor resigns! Lyon announce new chairwoman labelled 'perfect choice' by ousted American investor after shock relegation

Ligue 1 outfit Lyon have announced Michele Kang as their new chairwoman and CEO of the Eagle Football Group and the club, with former president and general manager Textor resigning from his leadership roles, including the board of directors. The changes come in the wake of a fan protest calling for the American investor to leave the club days after they were ordered to drop to the second tier.

Earlier in June, the National Control and Management Directorate (DNCG), French football’s economic watchdog, decided to relegate the seven-time Ligue 1 champions to the second tier, citing they had not done enough to improve their financial situation. Before Textor took over the club, Lyon had spent heavily on infrastructure, including the Groupama Stadium, but the Covid-19 pandemic and poor performances on the pitch affected them financially, and they had to rely on player sales.

They raised funds by selling their women’s team to Kang, who herself is a businesswoman, and also sanctioned the sale of the LDLC Arena. However, they continued to spend large sums on transfers, gradually increasing their debt to €505m ($593m/£507m) last November, compelling the DNCG to relegate them and also imposing a transfer ban for the January window. After conducting an audit of their finances, the DNCG instructed them to improve their balance sheet by the end of the 2024-25 season. Textor stated that they had to overcome a deficit worth €100m ($117m/£85.5m) and requested to stay in Ligue 1. Player sales followed, with Rayan Cherki making a move to Manchester City this summer and the club offloading a few out-of-contract players; a spot in the Europa League helped too, showcasing a slight improvement. However, DNCG were not convinced and stood firm with their order.

After accepting the new role, Kang stated: "We are entering a critical moment for OL and I want to thank John for his commitment and vision in bringing the club into the Eagle Football family. I look forward to working closely with Michael, OL management team, and the Board as we focus on supporting the club through the DNCG process and beyond."

Textor said: "I am extremely proud of our sporting success at OL, having successfully rebuilt the squad, returning to European competition in each of the last two years, after a long absence. I’m grateful to everyone at OL for their dedication during this exceptionally challenging time. Michele is a perfect choice to lead OL in the next phase and I have full confidence in Michele and OL will come out stronger under her leadership."

As of now, Lyon’s debt stands at €175m (£150m/$205m), as reported by L’Equipe, and the team’s future in the French top flight is uncertain.