Olympique Lyonnais, one of France’s most storied football clubs, has been officially relegated to Ligue 2 after failing to satisfy the financial requirements set by French football’s financial watchdog. The DNCG (Direction Nationale du Contrôle de Gestion), the organization in charge of overseeing clubs’ financial health, announced the decision on Tuesday following a hearing with club officials.
Despite finishing sixth in Ligue 1 this past season and securing a spot in the UEFA Europa League, Lyon’s financial structure failed to meet the regulatory standards imposed late last year. This provisional demotion is a significant setback for a club that has been a consistent presence in the top flight of French football since 1989.
The Ligue de Football Professionnel (LFP), which runs Ligue 1 and Ligue 2, confirmed the demotion after Lyon were unable to convince the DNCG to lift its financial restrictions. The club, however, has said it will challenge the decision through an appeal.
Lyon’s American owner, John Textor, voiced optimism before the hearing, expressing confidence in the club’s financial recovery. “We have made a variety of investments in recent weeks. Everything is good financially,” Textor had stated. The club pointed to several moves as evidence of progress, including a reduction in the wage bill and the recent high-profile sales of Rayan Cherki to Manchester City and Maxence Caqueret to Como.
Textor also sold his 43 percent stake in Premier League side Crystal Palace earlier this week, in what appeared to be an effort to improve Lyon’s financial standing.
Despite these efforts, the DNCG remained unconvinced, leading to the club’s provisional relegation.
This decision, if upheld, would mark a dramatic fall for a team that won seven consecutive Ligue 1 titles from 2002 to 2008 and has long been a staple in European competitions.
The timing of the demotion complicates Lyon’s upcoming season planning, especially after qualifying for continental football. UEFA’s stance on whether they will allow a second-division side to participate in the Europa League remains unclear. If Lyon’s relegation is finalized, Reims, who finished just outside of European qualification, are expected to remain in Ligue 1.
What Happens Next
Lyon have already confirmed that they will appeal the decision and will seek to prove to the DNCG that the club is financially sound and compliant with all regulations.
In past cases, several French clubs have successfully overturned DNCG decisions on appeal by providing further financial guarantees or restructuring their finances. Lyon will hope for a similar outcome, although the regulator is known for maintaining strict enforcement of financial discipline.
Until a final decision is made, uncertainty hangs over both Lyon’s immediate future and the structure of next season’s Ligue 1
A Fall From Grace
Olympique Lyonnais’ possible fall to Ligue 2 would be one of the biggest shocks in modern French football history. Known for developing top talents and competing in Europe’s elite competitions, the club’s recent struggles off the pitch now threaten to overshadow its on-field achievements.
Fans will be hoping that the appeal process will favor their team, but for now, the reality is that one of France’s most iconic football institutions is staring down a season in the second division.
See also:
Lyon Relegated to Ligue 2 After Financial Review by DNCG
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