Lyon relegated to Ligue 2 due to financial irregularities

Olympique Lyonnais (EEFG.PA) have been relegated to Ligue 2, French football’s financial watchdog, the DNCG, announced following a financial audit. The club said it would appeal the decision immediately.

Lyon was provisionally demoted by the DNCG in November due to financial difficulties, and the decision was confirmed on Tuesday after a meeting between club owner John Textor and the regulator.

In a statement, Lyon criticized the ruling and emphasized their cooperation with the DNCG, asserting they met all its requirements.

“Olympique Lyonnais takes note of the incomprehensible decision by the DNCG and confirms it will appeal immediately,” the club said.

“Given our demonstrated funds and sporting success, including qualification for European competition in two consecutive seasons, we cannot understand how an administrative decision could relegate such a prestigious French club.”

The announcement came a day after U.S. businessman John Textor sold a 43% stake in English club Crystal Palace.

“Thanks to shareholder equity contributions and the Crystal Palace sale, our cash position has significantly improved, and we have ample resources for the 2025/26 season,” Lyon added.

In October, Textor’s Eagle Football Group disclosed debts of approximately £422 million ($575 million), raising concerns about Lyon’s financial health.

Since then, Lyon has raised funds by selling several players, including Maxence Caqueret to Como and Rayan Cherki to Manchester City.

However, the club has not convinced the authorities that its financial situation has improved enough to lift the sanctions.

Before the decision was announced, Textor expressed confidence in the club’s financial position.

“We have invested new capital from our shareholders not only to satisfy the DNCG but also for UEFA licensing. The Crystal Palace sale is also positive news. Our liquidity has improved considerably,” he told reporters.

Lyon, seven-time French champions between 2002 and 2008, secured a sixth-place finish in Ligue 1 this season, qualifying for next season’s Europa League.

If the relegation stands, Stade de Reims, who were relegated after losing in the playoffs to Metz, would take Lyon’s place in Ligue 1 next season.

Neither Reims nor the Ligue de Football Professionnel (LFP) were immediately available for comment.