Lyon hand relegation following financial instability

'Incomprehensible' - French giants handed shock relegation as player exodus falls short of fixing major issue.

French giants Lyon have been relegated to Ligue 2 after failing to convince authorities they have resolved their financial difficulties.

The seven-time French champions were hit with a provisional relegation back in November after racking up massive debts, and although they have since sold a number of first-team players, French football watchdog the DNCG upheld the relegation following meetings on Tuesday.

The decision was announced by the French Football League (LFP) on Tuesday evening. Monaco, Nantes and Paris FC will face no further action.

Although Lyon can still appeal against the ruling, the decision to relegate a club that won seven consecutive titles between 2001-02 and 2007-08, and reached the semi-finals of the Champions League as recently as 2020, will send shockwaves through French football.

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

Textor is in the process of selling his shares in Premier League club Crystal Palace, who are at risk of being denied their place in the Europa League next season as Lyon have also qualified after finishing sixth in Ligue 1.

A sale to Woody Johnson, owner of the NFL’s New York Jets, has been agreed but the Premier League is yet to ratify the deal and Johnson must yet pass the Premier League’s owners’ and directors’ test.

After receiving the provisional relegation last year, Lyon sold the likes of Said Benrahma, Anthony Lopes and Maxence Caqueret in January, and this summer they have already sold Rayan Cherki to Manchester City.

In a statement, Lyon announced they would fight against the ruling.

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

“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.”