Lyon relegated to Ligue 2 over financial crisis

French Ligue 1 giants Lyon have seen themselves relegated to the second tier of French football, following an audit by the French football financial watchdog.

The seven-time French champions will appeal against a decision termed as “incomprehensible”, after failing to convince authorities they have resolved their financial crisis.

The Ligue 1 giants enjoyed a mixed campaign in the second half of the season when the club was informed of the potential outcome of the authority’s findings.

The club, however, managed to finish the season on a high, qualifying for Europe and placing sixth in Ligue 1 last season.

They were hit with a provisional relegation back in November after racking up massive debts, and although they have since sold several first-team players, French football watchdog the National Directorate of Management Control (DNCG) upheld the relegation following meetings on Tuesday.

Lyon is owned by John Textor, and the decision to relegate them comes a day after the American businessman sold his stake in Crystal Palace to New York Jets owner Woody Johnson.

However, Lyon are yet to learn the implications of this on the club’s Europa League place, and any further implications for Crystal Palace’s place are currently unknown.

A verdict on whether Lyon meets financial rules from the UEFA Club Financial Control Body (CFCB) is yet to be ascertained.

Lyon, in a statement, said: “Olympique Lyonnais acknowledges the incomprehensible decision handed down by the DNCG this evening and confirms that it will immediately appeal.

“Over the past few months, we have worked closely with the DNCG, meeting all of its demands with equity investments in excess of the amounts requested. Thanks to equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025/26 season.

“With proven funds and sporting success that has earned us a place in European competition two years in a row, we sincerely do not understand how an administrative decision could have relegated such a major French club. We will appeal to demonstrate our ability to provide the necessary financial resources to ensure OL’s continued presence in Ligue 1.”

Textor told L’Equipe last week he was confident Lyon’s financial position had been resolved, having said back in November there was “no chance” the club would be relegated.