Lyon out of Ligue 1! Financial woes send 7-time champions to second tier

Seven-time Ligue 1 champions Olympique Lyonnais have been relegated following a financial review by France’s governing financial body, the DNCG.  The decision, finalized on June 24, confirms the provisional demotion announced in November due to the club’s financial instability. The ruling came after a meeting between club owner John Textor and the DNCG officials.

 

Lyon immediately stated their intention to appeal the decision, insisting they have complied with all financial requirements. In a public statement, the club said: “Olympique Lyonnais takes note of the incomprehensible decision...and confirms that it will appeal immediately.” 

 

  7-time champions down to the second tier  They highlighted their on-field success, securing spots in European competition for the past two seasons, and questioned how such a storied club could face relegation based on administrative reasons.  

The move comes on the heels of John Textor selling 43% of his stake in Crystal Palace. Lyon emphasized that proceeds from that sale, along with shareholder equity injections, have strengthened their financial position for the 2025–26 campaign.

 

Despite efforts to reduce debt, over €422 million owed by Textor’s Eagle Football Group, and player sales like Maxence Caqueret and Rayan Cherki, Lyon has failed to meet DNCG standards. 

 

Textor expressed confidence, saying, “You can see from shareholder contributions that we’ve injected new capital...and with the recent sale of Crystal Palace, our liquidity has significantly improved.”

 

Having finished sixth in Ligue 1 and qualifying for the UEFA Europa League, Lyon’s relegation opens a potential pathway for Stade de Reims, who lost their relegation playoff, to retain their top-tier status. Neither Reims nor the French football federation (LFP) has issued a response to the situation.