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Historic French football powerhouse Olympique Lyonnais has officially been relegated to Ligue 2 following a decision by the French Professional League (LFP) on Tuesday, prompted by ongoing financial instability. The ruling marks a significant fall from grace for the seven-time Ligue 1 champions, who last reached the Champions League semifinals in 2020.
Despite the club’s insistence that its finances had stabilized, the National Directorate of Management Control (DNCG), France’s financial oversight body for professional football, confirmed the demotion following months of scrutiny and a meeting with club executives including owner John Textor and director of football Mickael Gerlinger.
The club reacted swiftly, expressing dismay in an official statement and confirming an appeal.
"Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.," the statement read.
Lyon was initially hit with a provisional relegation in November after regulators flagged the club’s €175 million ($203 million) debt and an apparent lack of a credible financial recovery plan. The DNCG also imposed a transfer ban during the January window.
Since then, the club has taken measures to raise funds—most recently transferring Rayan Cherki to Manchester City for €42.5 million and selling other key players including Maxence Caqueret and Said Benrahma. However, those moves failed to reassure French football’s watchdog, especially amid concerns stemming from the financial condition of Eagle Football Group, Textor’s holding company.
In October, the group revealed debts approaching €575 million, amplifying scrutiny over Lyon’s future.
If the demotion is upheld, Stade de Reims, defeated by Metz in the relegation playoff, may remain in the top flight instead.
Though the club maintains it met the DNCG’s financial demands, the watchdog’s decision highlights the growing role of financial discipline in determining the fate of top clubs in Europe.
In its concluding remarks, Lyon reiterated its determination to reverse the decision:
"Through our appeal, we will establish our substantial cash resources as necessary for Olympique Lyonnais to keep its place in Ligue 1."
As the appeal process unfolds, the future of one of France’s most storied clubs remains uncertain, casting a shadow over their recent sporting achievements and ownership structure.
Featured Image Credit: Pixabay / jorono, Pexels / Aubin Kirch
