Olympique Lyonnais have officially been relegated to Ligue 2, marking a dramatic fall from grace for the seven-time French champions.
The decision, confirmed by French football’s financial watchdog, comes after the club failed to convince authorities it had resolved ongoing financial issues.
The National Directorate of Management Control (DNCG) upheld its initial ruling made in late 2024, citing Lyon’s continued financial instability despite attempts to cut costs, including the sale of key players.
The ruling ends Lyon’s 35-year stay in France’s top flight.
Lyon’s American owner, John Textor, now finds himself at the center of growing scrutiny.
Just a day before the final ruling, Textor sold his stake in Premier League club Crystal Palace to New York Jets owner Woody Johnson, a move some speculate may be linked to financial pressures across his multi-club empire.
Textor, who also owns Brazil’s Botafogo and Belgian side RWD Molenbeek, had envisioned Lyon as a central piece of his global football network.
Instead, the club’s relegation casts doubt over the viability of his ownership strategy and raises questions about the sustainability of rapid expansion in the football investment world.
In a statement, Lyon condemned the DNCG’s ruling as “incomprehensible” and confirmed they will appeal.
However, the drop to Ligue 2 has already triggered immediate consequences, including potential loss of broadcasting revenue, sponsorship renegotiations and uncertainty over their Europa League qualification, which now hangs in the balance.
A separate ruling from UEFA’s Club Financial Control Body (CFCB) on whether Lyon will be allowed to participate in European competitions is still pending.
With their future uncertain, Lyon face not only the sporting challenge of returning to Ligue 1 but also a significant financial and reputational rebuild.
What was once one of France’s most stable clubs is now at a crossroads—fighting for relevance and recovery in the unforgiving world of modern football business.
