It seems that Lyon will be subject to severe sanctions from the Directorate General de Contrôle de la Confédération de la Football (DNCG). This was reported by the French newspaper L'Equipe and others. Lyon will be demoted to Ligue 2 at the end of the season if they don't sort out their finances. They'll also be banned from signing players in January.

Lyon owner John Textor is also involved with Premier League club Crystal Palace and Brazilian club Botafogo as a major shareholder.

His Eagle Football Group recently revealed that it has £422m in debt.The DNGC, which oversees the accounts of French professional football clubs, made the ruling on Friday.And The DNGC will also be keeping an eye on Lyon's payroll.

Olympique Lyonnais, who have won the French championship seven times, will have to sell a few of their best players in January to get their accounts in order and stay in the top flight.

American Textor might be able to help manage the debt by selling his stake in Palace or selling Botafogo players.

Lyon are currently placed fifth in Ligue 1 and ninth in the Europa League.