Just weeks after clinching a spot in next season’s Europa League, Olympique Lyonnais have been dealt a stunning blow — a provisional demotion to Ligue 2.
The decision follows a financial review by France’s National Directorate of Management Control (DNCG), which flagged the club’s considerable debt as the reason for the unprecedented move.
The seven-time Ligue 1 champions now face a fight off the pitch to secure their top-flight status.
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Financial Woes Lead to DNCG Ruling
The DNCG initially issued a provisional relegation ruling in November due to Lyon’s accumulating debts. Despite the club’s efforts to mitigate the situation by selling several first-team players, the DNCG upheld its decision following recent meetings. This ruling casts a shadow over a club that finished an admirable sixth in Ligue 1 last season, securing a spot in the Europa League.
Lyon’s Stance and Imminent Appeal
Olympique Lyonnais has vehemently rejected the DNCG’s decision, labeling it “incomprehensible.” In a statement released on their official social media, the club confirmed its immediate intention to appeal the ruling. They argue that they have diligently worked with the DNCG, fulfilling all requests and injecting substantial cash equity investments exceeding the required amounts.
The club highlighted that “Thanks to the equity contributions of 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.”
Lyon, owned by John Textor (who recently sold his stake in Crystal Palace to New York Jets owner Woody Johnson), emphasized their strong cash liquidity and their consistent sporting success, which has led to European qualification for two consecutive years.
They expressed bewilderment at how “one administrative decision could relegate such a great French club.” Lyon is confident that their appeal will demonstrate their robust financial resources, which they believe are sufficient for the club to retain its place in Ligue 1.
A Storied History and Star Players
Olympique Lyonnais enjoyed a golden era between 2002 and 2008, clinching seven consecutive French championship titles. Over the years, the club has been a launching pad for numerous footballing talents who went on to achieve international recognition.
Notable players who have represented Les Gones include Karim Benzema, Alexandre Lacazette, Lucas Paqueta, Memphis Depay, Jerome Boateng, Anthony Martial, Hatem Ben Arfa and Nabil Fekir. The potential relegation of such a historically significant club, with its rich legacy of developing world-class players, would undoubtedly be a major shake-up for French football.
Full Statement
A statement released on the club’s official social media page read, “Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.
In recent months, we have worked closely with the DNCG, satisfying all of its requests with cash equity investments exceeding the amounts requested. Thanks to the equity contributions of 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 so much cash liquidity demonstrated, and sporting success which has earned European competition in two consecutive years, we sincerely do not understand how one administrative decision could relegate such a great French club. Through our appeal, we will establish our substantial cash resources as necessary for Olympique Lyonnais to keep its place in Ligue 1.”