Huge European club 'facing Champions League ban' after UEFA ruling

Ligue 1 giants Lyon could be excluded from next year’s Champions League over concerns they have failed to comply with the terms of a settlement with UEFA last summer.

The French side currently sits fourth in Ligue 1, one point behind Lille in the Champions League spots with one match to play against Lens this Sunday.

A win would see them at least see them secure a place in the Champions League qualifiers, having already guaranteed at least a Europa League spot should they fail to progress through that stage.

However, in order for Lyon to gain a licence to compete in UEFA-sanctioned competition, they must first show evidence that they have complied with the European football governing bodies’ regulations.

In the summer of 2025, UEFA’s Club Financial Control Body (CFCB) announced sanctions against Lyon, as well as Premier League sides Aston Villa and Chelsea – for breaching financial sustainability rules.

The CFCB made clear that clubs must comply with certain conditions over the next four years.

Lyon were also fined £10.7 million and were initially relegated to Ligue 2 before this was overturned on appeal.

Lyon’s owners were required to inject €60m (£51m), with the amount supposed to be converted into equity by October 15.

Although according to The Telegraph, the club have not fulfilled this obligation, which could see them excluded from European competition.

UEFA generally tend to avoid excluding clubs from competitions, although this remains a live option if Lyon have failed to follow the requirements set out by the body.

The Ligue 1 side are in financial ruin and announced losses of €186m (£159m) for the second half of 2025 earlier this week.

Lyon are currently under the control of American investor Michele Kang – who acts as the club’s president – as well as principal creditor to John Textor - the previous owner and Crystal Palace shareholder - Ares Management.

Textor attempted to create a multi-club ownership group, Eagle Football, but this has resulted in huge losses and debts.

Eagle Football Group (EFG) – a company owned by Kang and Ares – claim that a portion of the losses were down to agreements Textor had allegedly entered into with other clubs in MCO’s network of clubs – including Brazilian side Botofogo and Belgian side RWD Molenbeek.

“These guarantees were unknown and had not been reported in the company’s financial statements published in recent years,” a statement posted by Lyon read.