French club Lyon will be demoted to Ligue 2 at the end of the season if they do not improve their finances, and will be banned from signing players in January.
Lyon owner John Textor is also co-owner of Premier League club Crystal Palace, and the largest shareholder of Brazilian club Botafogo.
His Eagle Football Group recently announced debts of £422m.
The DNGC, the body which oversees the accounts of French professional football clubs, made the ruling on Friday.
The Ligue 1 giant will also have their payroll supervised by the DNGC.
Seven-time French champions Lyon are likely to have to sell several key players in January to get their accounts in order and maintain their top-flight status.
American Textor could reportedly help manage the debt by selling his stake in Palace, or selling Botafogo players.
The seven-time French champions are fifth in Ligue 1 and ninth in the Europa League.
