Olympique Lyonnais have secured a reprieve from relegation and will remain in Ligue 1 for the 2025–26 season after a successful appeal to the DNCG (Direction Nationale du Contrôle de Gestion), the French football financial watchdog.
DNCG Decision Reversed, Restrictions Imposed
In November, the DNCG initially imposed a provisional relegation to Ligue 2, citing alarming financial troubles. By year-end, the club was confirmed for demotion after debts reached approximately €540 million and operating losses stood at €117 million.. However, after presenting a revised financial restructuring plan—which included major cash injections totaling €200 million—and a new budget capped on wage and transfer expenditures, Lyon’s appeal was granted on July 9, 2025.. The DNCG’s reversal reinstates Lyon into Ligue 1, now under strict financial monitoring.
Management Overhaul Drives Appeal Success
Key to the successful appeal was the leadership change at the club. Michele Kang, proprietor of Lyon’s women’s team OL Lyonnes, replaced John Textor as president on June 30, 2025, shortly after Textor’s resignation from the board. The DNCG cited Lyon’s new governance as a sign of renewed commitment to “serious management”. The revamped board quickly secured the necessary funds, with €100 million to stabilize the club and another €100 million as required reserves.
Sporting Rewards & Europa League Qualification
Sportingly, Lyon stood sixth in Ligue 1 and had already qualified for the 2025–26 Europa League. With retention in the top flight, this qualification remains intact. The club has expressed relief and renewed focus on performance, thanking supporters and stakeholders for their encouragement .
Broader Implications: Crystal Palace & UEFA Thresholds
Lyon’s reinstatement also has continental repercussions. Both Lyon and Crystal Palace previously qualified for the Europa League—Lyon via league position, Palace through the FA Cup—were under shared ownership by John Textor’s Eagle Football Group. UEFA regulations prohibit teams with linked ownership from competing in the same European tournamen. With Lyon back in the competition, Palace’s qualification could be jeopardized. UEFA is expected to evaluate the situation soon, adding another layer of complexity.
Financial Conditions & Next Steps
- Budgetary constraints: Lyon must adhere to a strict cap on player wages and transfer spending within their 2025–26 budget.
- Continued scrutiny: The DNCG and potentially UEFA will monitor the club’s financial health and compliance closely throughout the season.
- Appeal outcome: A successful appeal marks the first step in “restoring confidence,” per Lyon’s official statement.
Anatomy of the Recovery
| Factor | Detail |
|---|---|
| Debt & Losses | €540m net debt; €117m loss (first half 2024). |
| Restructuring | €200m in cash/guarantees presented; new budget with strict caps |
| Leadership Change | Michele Kang takes over, Textor steps down |
| Sporting standing | Finished 6th; retains Europa League place |
What Lies Ahead
- On-field focus: Lyon will aim to qualify for Europe again, balancing ambition with financial discipline.
- UEFA talks: Palace’s status in Europe hinges partly on Lyon’s reinstatement—UA will decide soon.
- Financial accountability: Lyon must navigate performance and profitability under continued oversight.
Conclusion
Olympique Lyonnais have averted relegation, secured a place in Ligue 1 and maintained their Europa League qualification by presenting a credible financial recovery plan and restructuring their leadership. While the club embarks on a path of accountability and regulated spending, they must now align sporting ambition with fiscal stability. Meanwhile, their fate may influence Crystal Palace’s European campaign, ensuring that Lyon’s appeal victory resonates far beyond France.
