His former club is at its lowest ebb after a 186-point defeat and the axing of coach Dean Bailey.
The blowtorch has been applied to CEO Cameron Schwab and general manager of football operations Chris Connolly but they have both survived for now.
In times of crisis and uncertainty, it is human nature to seek comfort in the familiar and that seems to be the tactic Melbourne have chosen, at least in the short-term.
Former skipper Todd Viney has been appointed the interim coach while his former teammate Lyon is the new football director.
Heads turned as Lyon arrived at Melbourne training on Friday and a larger than usual media pack gathered to hear his thoughts on his first official day in the role.
He admitted it was a strange feeling returning to the club where he was captain for seven years, likening it to his first day at school.
"It is a bit like that. I didn't know where to park. I didn't know how to get in and I didn't know where to go. I've found a park, eventually someone let me in the door and away we go," Lyon said.
Lyon spoke briefly to the Melbourne players on Friday morning and said he took time to remind them that despite the doom and gloom of the past week, they were still leading privileged lives.
"We've got a clean slate here, we want them to concentrate on footy, to put in place an environment that allows them to do that. I've been there, I've been through it as a player and it can be difficult," he said.
"But I just said 'Smile boys, you've got a pretty good job. You're doing what you love and get out there and have some fun. Rebuild trust and relationships if they need to be rebuilt.'"
Lyon and Viney alone won't instantly take the club back to the relative glory days of when it was a regular finals performer in the late 80s through to the mid 90s but they do present a reason to believe for bewildered Melbourne fans.
Both have admitted to taking on their new roles largely as a favour to their former teammate, current Melbourne president Jim Stynes who was admitted to hospital again this week as he battles cancer.
Lyon had strongly urged Stynes to take a back seat but admitted he was a hard man to keep still.
"I got a message from him this morning and he's feeling better and wants to come to the game tomorrow. I'm not going to turn around and say you're not coming to a game of footy, Jim. No one has got that right. We can put in place some things to help him but in the end he makes the call," he said.
By round one next year Viney will be back in his role in charge of football development while Lyon will be focussing his energy on his high-profile media career.
But what they do over the next five weeks could have a significant bearing on which direction the Demons take next season and beyond.
Luke Holmesby covers Melbourne news for afl.com.au. Follow him on Twitter: @AFL_LHolmesby
