Lyon Relegated to Ligue 2 After Financial Watchdog Ruling

Olympique Lyon, one of the most successful clubs in French football, have been officially relegated to Ligue 2 following a decision by the French league’s financial watchdog. The club, however, retains the right to appeal this major ruling.

WHAT HAPPENED?

The French Professional League’s financial control body (DNCG) confirmed Lyon‘s relegation after an extensive review of the club’s accounts. The DNCG found Lyon’s financial situation precarious, citing massive debt that had at one point surpassed €500 million and a lack of a clear plan to fix it. Despite Lyon’s efforts to raise funds, including selling key players like Rayan Cherki to Manchester City for €42.5 million, these measures were not enough to convince the regulators. The club described the ruling as “incomprehensible” and immediately announced plans to appeal, insisting that their finances are being stabilized and that sporting results should guarantee their Ligue 1 status after back-to-back European qualifications in recent seasons.

LYON’S SEASON AND FINANCIAL BACKDROP

Lyon, seven-time French champions, have faced severe off-field challenges this year. In November, the DNCG had already issued a provisional relegation warning due to debts in excess of €175 million and inadequate plans for repayment.

Ownership led by John Textor was unable to provide a convincing financial road map, and attempts to use funds from sister club Botafogo were blocked by French authorities. On the pitch, Lyon had started to recover form, achieving European qualification for the second year running and raising hopes among supporters that the worst might be over. The club’s financial troubles, however, overshadowed these improvements and ultimately led to Tuesday’s dramatic decision.

WHAT NEXT FOR LYON?

Lyon will now prepare an urgent appeal, hoping to overturn the decision before the new season commences. The club will likely continue asset sales to shore up finances and seek new investment. If their appeal fails, Lyon will play in Ligue 2 next season for the first time since 1989. The club’s next scheduled match is in the Coupe de la Ligue against top-tier opposition, placing further pressure on management to resolve the crisis quickly. Their fate could also have ripple effects across French football, with star players and staff potentially seeking transfers if Ligue 1 status is not quickly restored.