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Financial Crisis Forces Lyon into Shock Relegation to Ligue 2

Posted : 25 June 2025

In a major blow to French football, Olympique Lyonnais has been relegated to the second division by the DNCG, the financial watchdog of French professional football. The decision follows the body's assessment that Lyon's current financial structure fails to meet the required standards, despite public claims by club president John Textor that the situation was under control.

 

Textor, who also owns Brazilian side Botafogo, had hoped that recent financial measures and upcoming transactions would convince regulators to allow the club to remain in Ligue 1.

 

Lyon, a club with a rich history that includes seven consecutive league titles in the early 2000s, finished sixth in Ligue 1 last season and made it to the Europa League quarter-finals, where they were narrowly eliminated by Manchester United. However, that on-field performance was overshadowed by off-field turmoil.

 

The club has faced scrutiny over its financial model, with a key part of its recovery plan hinging on the sale of a 45% stake in Premier League side Crystal Palace, currently owned by Lyon’s parent company, Eagle Football. That €222 million deal is still awaiting Premier League approval.

 

To stabilize the club's finances, Eagle Football injected €83 million into Lyon, restructured debts, and laid off nearly 100 staff members. The expiry of large player contracts, including those of star striker Alexandre Lacazette and veteran goalkeeper Anthony Lopes, is expected to cut expenses significantly. Player sales have brought in around €106 million, with an additional €19.5 million anticipated from the activation of purchase clauses in existing deals.

 

Despite these efforts, the DNCG found the financial situation insufficient to justify continued participation in Ligue 1. The club is now expected to appeal the ruling in the coming days. Lyon’s sudden demotion marks a dramatic reversal for a team once considered among Europe’s elite and underscores the mounting pressure on clubs to maintain both sporting and financial competitiveness.

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