Olympique Lyonnais relegated to French Ligue 2 over financial crisis
By: Kwame Bediako
French football giants Olympique Lyonnais have been relegated to Ligue 2 following a financial audit by the National Directorate of Management Control (DNCG), the French football financial watchdog. The seven-time French champions were unable to convince authorities that they had resolved their ongoing financial crisis, leading to the upholding of their provisional relegation.
Lyon’s management has described the decision as “incomprehensible” and confirmed plans to immediately appeal. Despite the looming financial issues, Lyon finished the 2024/25 Ligue 1 season strongly, securing sixth place and qualifying for European competition. The club had been provisionally relegated back in November after accumulating significant debts.
Since then, Lyon sold several first-team players in an effort to stabilize their finances. However, the DNCG maintained the relegation decision after meetings held on Tuesday, citing unresolved financial concerns. Lyon is owned by American businessman John Textor, who recently sold his stake in English Premier League club Crystal Palace to Woody Johnson, the owner of the New York Jets.
The timing of this sale coincides with the DNCG’s decision, although the impact on Lyon’s Europa League qualification and any consequences for Crystal Palace remain unclear. Additionally, UEFA’s Club Financial Control Body (CFCB) has yet to announce whether Lyon meets its financial regulations.
In an official statement, Olympique Lyonnais expressed shock at the ruling, emphasizing their cooperation with the DNCG and the equity investments made to meet financial requirements. The club highlighted improved cash flow following shareholder contributions and the Crystal Palace sale, asserting they have sufficient resources for the upcoming season.
Lyon vowed to appeal the decision to safeguard their place in Ligue 1, citing their recent sporting success and financial commitments. John Textor had previously expressed confidence in Lyon’s financial recovery, stating in November that relegation was “no chance.”
Despite this assurance, the club now faces the challenge of overturning the DNCG’s ruling to remain in France’s top flight. The coming weeks will be critical as Lyon navigates the appeals process and seeks clarity on their European competition status.
