
French giants Olympique Lyon relegated to Ligue 2
French football club Lyon has been relegated to Ligue 2 due to ongoing financial difficulties.
Lyon's demotion was confirmed by the DNGC, the French body responsible for overseeing the financial health of professional football clubs.
Despite meetings between Lyon officials, including owner John Textor, and the DNGC on June 24, the club was unable to convince the body that their financial situation had sufficiently improved to reverse the decision.
Lyon's debts, which stood at £422m last October, have been a source of concern for the governing body, and despite recent efforts to raise funds through player sales, the club's financial future remains precarious.
The club, which has won seven Ligue 1 titles, including a historic seven consecutive championships between 2002 and 2008, has not played in Ligue 2 since 1989.
Lyon's relegation could have wider repercussions for Premier League side Crystal Palace. Textor, who holds a majority stake in Lyon, also owns a 43% share in Palace.
🚨 OFFICIAL: Olympique Lyon have been relegated to Ligue 2.
The club has the possibility to appeal the decision. pic.twitter.com/T4UKbqYQBV — Fabrizio Romano (@FabrizioRomano) June 24, 2025
However, he agreed to sell this stake to New York Jets owner Woody Johnson earlier this week.
UEFA rules prevent multiple clubs under the same ownership from competing in the same European competition, meaning that Palace's spot in the Europa League could be jeopardised if Lyon's relegation is upheld and Uefa deems the multi-club ownership as a breach of regulations.
Lyon officials expressed confusion over the decision, calling it "incomprehensible," and have announced plans to appeal the ruling.
The club's statement also pointed to recent efforts to resolve their financial issues, such as player sales, including the £45m earned from selling Maxence Caqueret to Como and Rayan Cherki to Manchester City, as well as the release of high-earning players like Alexandre Lacazette.
Despite these efforts, the DNGC's decision stands for now.
Lyon's relegation comes just months after the financial struggles faced by Bordeaux, another French club relegated from Ligue 1 due to similar financial problems.
As Lyon prepares for their appeal, the outcome could have lasting implications, not just for the French club, but also for Crystal Palace, as they await clarity on their participation in European competitions next season.
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