French giants Toulon are facing relegation to the Pro D2 due to financial issues, according to reports in the French press.

It's a move that would send shockwaves throughout French rugby and the threat comes about after the National Directorate of Control and Assistance (DNACG) are reported to have raised a red flag.

The DNACG is the administrator that monitors the finances of French rugby clubs and ensures they are balancing the books.

Local newspaper Var Martin are reporting are reporting the news and it is believed the watchdog wants answers before June 30.

Leigh Halfpenny in action for Toulon

Possible sanctions range from points deductions to payroll reduction to relegation from the league.

It is reported that wages are not the issue, but instead centres around an alleged disagreement with former kit suppliers Puma.

A resolution must be reached rapidly or there could be some dark times ahead for the three-time European Champions.