In a dramatic turn of events shaking the foundations of French football, Olympique Lyonnais, a club steeped in history and fresh off a successful on-pitch season, has been formally relegated to Ligue 2. The decision, delivered by the National Directorate of Management Control (DNCG), the financial watchdog of French soccer, cites financial breaches as the reason.
The ruling lands seven months after the club faced a provisional relegation notice, placing owner John Textor under immense pressure to stabilize Lyon`s financial standing. Despite what the club insists are significant improvements and sufficient resources, the DNCG`s final judgment has been delivered.
Lyon`s Stunned Reaction and Immediate Appeal
The response from the club was swift and unequivocal: they will appeal the decision immediately. In a statement, Olympique Lyonnais labeled the DNCG`s ruling “incomprehensible.” The club argues that they have worked diligently with the DNCG, meeting all requested criteria through substantial cash equity investments from shareholders.
Lyon specifically highlights the influx of shareholder capital and the planned sale of a stake in England`s Crystal Palace as evidence of their significantly improved cash position. They maintain that they possess more than adequate financial resources for the upcoming 2025/26 season and beyond. The club`s position is clear: with demonstrated financial liquidity and recent sporting achievements culminating in qualification for European competition, the administrative decision to relegate them seems, frankly, baffling to them.
The Financial Balancing Act
For months, the cloud of financial scrutiny has hung over Lyon. Estimates of the club`s debt have varied widely, creating uncertainty. The provisional relegation last fall served as a clear warning, compelling the club and owner John Textor to act decisively.
Recent weeks have seen visible efforts to address the financial concerns. Player departures, generating substantial transfer fees, have been part of the strategy. Notably, the reported sale of Rayan Cherki to Manchester City for a significant sum aimed to inject much-needed cash into the coffers. Furthermore, Textor`s move to divest his stake in Crystal Palace, another asset under the Eagle Football Holdings umbrella, represents a major potential financial boost. While the sale agreement is reported to be worth hundreds of millions, the timing of when those funds are actually received may be a critical factor in the DNCG`s assessment – a classic case of promised money versus cash in hand.
Sporting Success Meets Financial Reality
Perhaps the most jarring aspect of this situation is the stark contrast between Lyon`s off-field financial struggles and their recent on-field performance. Against expectations, the team mounted a remarkable resurgence in the latter half of the 2024-25 Ligue 1 season, climbing the table to finish in a respectable sixth place. This impressive finish secured qualification for the league phase of the upcoming UEFA Europa League season.
To achieve qualification for European competition through sporting merit, only to be potentially demoted to the second division by financial regulation, presents a difficult paradox. It underscores the DNCG`s mandate: financial health is paramount, regardless of recent results on the pitch. For Lyon, the challenge now is to convince the appeals body that their current and projected financial state is robust enough to warrant reinstatement to Ligue 1, thereby aligning their administrative status with their sporting achievement.
The appeal process will be crucial. It is Lyon`s opportunity to present their case and financial data to a higher authority in French football governance. The future of one of France`s most prominent clubs hangs in the balance, contingent not on goals scored or points gained, but on balance sheets and financial forecasts.
