Olympique Lyon, one of France’s most successful clubs, have been relegated to Ligue 2 – not for poor performance on the pitch, but for failing to meet financial regulations.
The French Football League’s National Directorate of Management Control, the DNCG, ruled Lyon’s finances too unstable for Ligue 1 participation. However, multiple sources report the club still has the option to appeal the decision.
The ruling follows a provisional demotion issued in November 2028, which the club failed to overturn during a recent hearing.
Despite efforts to balance the books – including player sales and wage cuts – the seven-time Ligue 1 champions could not convince regulators they had improved their financial standing. Club owner John Textor, along with other senior figures, presented their case this week but left without the outcome they hoped for.
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In October, Textor’s Eagle Football Group disclosed debts totaling approximately €505 million (£422 million), a staggering figure that sealed Lyon’s fate. The DNCG insists such a financial burden is incompatible with Ligue 1 participation and poses serious risk to the competition’s integrity.
To mitigate losses, Lyon sold Maxence Caqueret to Como in January and let Rayan Cherki join Manchester City in June. Both sales generated an estimated €52 million combined. They also released high earners like Alexandre Lacazette and Anthony Lopes to cut wage expenses. Nevertheless, these measures were not enough.
Lyon’s topflight status in jeopardy as Reims await possible reprieve
With Lyon now set for relegation, Reims – who lost the relegation play-off to Metz – may be reinstated to Ligue 1. This decision, however, depends on whether Lyon appeal the verdict and can successfully restructure their financial obligations.
Crucially, the punishment is not performance-related. Instead, it reflects the club’s inability to live within its means, serving as a warning to other French clubs. Lyon are also banned from registering new players until they meet financial compliance.
While the club still has the right to appeal, time is running out. Unless they find a way to resolve their financial chaos quickly, Lyon’s drop to Ligue 2 will stand. It’ll definitely be a seismic fall for a once-dominant force in French football.
Tags: Olympique Lyonnais, Lyon, #Ligue2, Ligue 2, French Ligue 1, #Ligue1, French Football League’s National Directorate of Management Control, DNCG, Reims, John Textor, Alexandre Lacazette, Anthony Lopes, Rayan Cherki, Maxence Caqueret, Como, Eagle Football Group.
