Seven-Time French Champions Lyon Relegated Over Finances

Seven-Time French Champions Lyon Relegated Over Finances

French giants Olympique Lyonnais have been relegated to Ligue 2 following a ruling by French football’s financial watchdog, the DNGC, due to ongoing financial instability.

The club, which won seven consecutive Ligue 1 titles between 2002 and 2008, failed to convince the DNGC in a Tuesday hearing that they had sufficiently stabilized their finances after being provisionally demoted in November.

Debts and Failed Rescue Measures

Lyon’s majority owner John Textor, via his Eagle Football Group, has been under pressure since October, when the group announced debts of £422 million.

To mitigate the crisis, Lyon raised around £45 million by selling:

• Maxence Caqueret to Como in January

• Rayan Cherki to Manchester City in June

Additionally, high earners such as Alexandre Lacazette and Anthony Lopes were released to trim the wage bill.

Despite these moves, the club’s efforts fell short of the DNGC’s financial compliance requirements.

Right to Appeal & Relegation Implications

Lyon retains the right to appeal the decision. If the ruling stands:

• Lyon will drop to Ligue 2 for the first time since 1989.

• Reims, who lost to Metz in the relegation play-off, are set to be reinstated in Ligue 1.

UEFA Scrutiny and Multi-Club Ownership Complications

Textor’s business dealings are under further scrutiny as both Lyon and Crystal Palace, in which he recently agreed to sell his 46% stake, have qualified for the 2025–26 Europa League.

UEFA prohibits multi-club ownership structures from fielding more than one team in the same European competition. Palace hope that Textor’s sale to Woody Johnson (New York Jets owner) will safeguard their European spot.

Lyon’s Legacy at Risk

Only five clubs have won more French titles than Lyon, who also reached the Champions League semi-finals in 2020. Their relegation marks a stunning fall from grace for one of France’s most storied sides.

A similar fate befell Bordeaux last year, who were relegated from Ligue 2 to the fourth tier and lost professional status due to bankruptcy.