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Liverpool and the rest of the Premier League will be keeping a keen eye on developments in France following Tuesday's news.

Lyon, a top-tier French club, has been demoted to Ligue 2 due to financial concerns.

However, the Premier League is also dealing with its own uncertainties, particularly surrounding Manchester City



In 2023, City faced 115 charges for alleged financial breaches in the Premier League, with court proceedings commencing in October of that year.

City has consistently denied the charges and allegations made against it, and the soccer world has been awaiting a verdict since the hearing wrapped up in December.

As Dave Powell, the Liverpool ECHO's Chief Business of Football Writer, points out, the situations involving Lyon and Man City are distinctly different.



Manchester City faces 115 charges over alleged financial rule breaches, which the club denies

"There is the tendency to look at these things for clues when it comes to what happens with Manchester City, but in reality, these are two very different issues that will be dealt with in very different ways," Powell told the Liverpool ECHO.

"The Lyon demotion comes about due to concerns that the DNCG, the body that oversees the accounts and financial practice of professional French football clubs, has over the club's ability to service its heavy debt, which stands at more than £420 million ($572 million).

"Without Champions League football this coming season, and with a significant payroll commitment, the provisional demotion of the club comes about because the DNCG fear that the club would risk the structure of Ligue 1 next season in the financial situation that they find themselves in, suggesting that they believe there is genuine potential for the club to default, which could force the hand of the LFP, the governing body of French football's top tier, to act during a season.

"It may be a tactic to force Lyon to act and cut their cloth accordingly straightaway, with the exits of Rayan Cherki to Manchester City for an initial £30.5 million ($41.6 million) fee, and high earners such as Alexandre Lacazette released already seeing the club trimming the playing squad.

"DNCG's issue is about protecting the top tier of French football from a potential issue further down the line, and putting pressure on Lyon to act

Manchester City's is a legal case where evidence has been presented, arguments on both sides made, and where a decision will be independently handed down based on the representations.

"City's case is around historical breaches of financial regulation that were in place, while Lyon's is around operational mismanagement that has allowed them to rack up debt that the DNCG believe poses a threat to the club's future and Ligue 1's integrity.

"There isn't much that can be read into Lyon's situation and it doesn't offer up any clues
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