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Lyon, June 24, 2025 – Olympique Lyonnais, despite finishing sixth in Ligue 1 and earning Europa League qualification, have been administratively relegated to Ligue 2. The decision by France’s financial watchdog, the DNCG, comes after a provisional demotion in November and follows an audit that confirmed serious financial irregularities.
Reasons Behind the Downfall
- Massive debt: Reports indicate Lyon accrued between €175 million and €500 million in debt, far beyond acceptable thresholds.
- Failed audit: The DNCG’s November provisional ruling became final today, citing continued mismanagement and insufficient funds to comply with licensing regulations.
- Ownership complications: The club, owned by John Textor’s Eagle Football Group—which recently sold 43% of Crystal Palace—still couldn’t meet DNCG’s stringent financial criteria. Lyonnais
A Historic Fall from Grace
- Elite performance: Once dominant—seven consecutive Ligue 1 titles (2002–08), Champions League semi-finalists, and Europa League quarter-finalists—Lyon now faces their first second-tier season since 1989.
- Sporting irony: Despite respectable on-field success, including Europa League qualification, regulatory oversight has overshadowed athletic achievements . Lyonnais
Implications & Future Path
| Area | Impact |
|---|---|
| Appeal process | Lyon has seven days to appeal; a successful case could delay or overturn relegation. |
| Reims promotion | If relegation is upheld, Ligue 1 play-off losers Reims may be reinstated . |
| European qualification | Lyon’s drop nullifies their Europa League spot, potentially clearing UEFA hurdles for Crystal Palace’s multi-club ownership . |
| Player exodus | Heightened risk of losing top talent amid lower-tier status, coinciding with Bordeaux’s transfer and loan moves . |
| Increased scrutiny | Lyon’s case amplifies concerns about the integrity of multiclub ownership models under financial regulatory pressure . |
Owner’s Position & Reactions
- John Textor’s stance: Confident in improving liquidity—highlighted investments and recent asset sales—but ultimately unable to satisfy DNCG standards.
- Regulatory resolve: The DNCG continues strict enforcement, showing no leniency even for top-tier clubs. Lyonnais
What Comes Next
- Appeal submission – Lyon must present renewed financial guarantees quickly to avoid enforced relegation.
- Roster shake-up – Expect major transfer activity as players seek top-flight football.
- Rebuild in Ligue 2 – Should relegation stand, Lyon may face a long-term project to regain Ligue 1 status.
- Ownership overhaul – Textor and Eagle Football may need further asset sales or capital raises to stabilize finances.
Final Word
Olympique Lyonnais’ relegation marks a seismic shift in French football—a financially robust performance overshadowing on-field success. The DNCG’s decision reaffirms that sustainable enterprise is now as critical as sporting ambition. Lyon’s future will be shaped by the outcome of their appeal, how fast they restructure, and whether their legacy can withstand this financial reckoning.
