Seven-time French champions Olympique Lyonnais have been relegated from Ligue 1. The decision was made by French football’s financial watchdog DNGG on Tuesday (June 24) after reviewing the club’s financial situation. The DNGG had announced Lyon’s temporary relegation last November due to financial problems. The decision was made after a meeting with club owner John Textor on Tuesday.
The club has announced it will appeal the decision. Olympique Lyonnais said it had worked with DNGG on its financial problems and had met all their demands. The club said: “We are shocked by this unexpected decision by DNGG. It is difficult for us to understand that such a big club would be relegated. We will appeal swiftly.”
The decision came a day after US businessman John Textor sold a 43 per cent stake in English club Crystal Palace. Lyon said the shareholder financing and the sale of Crystal Palace had improved their cash position and meant they had enough money for the 2025/26 season.
It is worth noting that in October, Eagle Football Group, led by John Textor, disclosed a debt of about 422 million euros. This led to concerns about the financial stability of Olympique Lyonnais. Since then, the club has sold several players to raise money. Among them, Maxence Cockeret went to Italian league club Como 1907 and Ryan Cherki went to Manchester City. Even then, they have not been able to sufficiently demonstrate their financial situation.
“We have raised new capital from shareholders which has helped us meet the licensing requirements of DNCG and UEFA. The sale of Crystal Palace has significantly increased our financial strength,” Textor said ahead of Tuesday’s formal decision.
Lyon won seven consecutive French league titles from 2002 to 2008. The club secured a place in the Europa League by finishing sixth last season. However, if the ban is upheld, Stade de Reims will be in trouble. They were relegated from Ligue 1 this season after a play-off against Metz. If Lyon’s ban is upheld, Stade de Reims could be promoted to the French top flight next season.
FAQ
Why was Olympique Lyonnais relegated from Ligue 1?
Lyon was relegated due to financial instability. French football’s financial watchdog, the DNCG, found issues in the club’s finances despite recent efforts to raise capital.
What is the DNCG?
The DNCG (Direction Nationale du Contrôle de Gestion) is the financial regulator of French football. It monitors clubs’ financial health and can impose sanctions like transfer bans or relegation.
Has Lyon responded to the DNCG’s decision?
Yes, Lyon expressed shock at the ruling and announced they will appeal the decision, claiming they met financial requirements.
How did Lyon try to fix their financial situation?
The club sold players, raised shareholder capital, and owner John Textor sold a 43% stake in Crystal Palace to improve liquidity.
