France's National Directorate of Control and Management (DNCG) warned Lyon of relegation in 11/2024 due to the club's debt of over 270 million USD. The DNCG gave Lyon until 6/2025 to resolve its financial issues.
In 1/2025, Lyon sold key players like Said Benrahma, Anthony Lopes, and Maxence Caqueret. In early 6/2025, they sold Rayan Cherki to Man City for 46 million USD. Owner John Textor also sold his stake in Crystal Palace to raise capital for Lyon. Last week, Textor told L'Equipe he believed Lyon's financial situation had been resolved and there was no risk of relegation.
However, in a meeting yesterday, 24/6, the DNCG decided to relegate Lyon because the club's "plan to resolve its financial problems was not convincing enough".
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Lyon players during a Ligue 1 match against Marseille at Groupama Stadium, Lyon, France on 22/9/2024. Photo: Reuters |
Lyon players during a Ligue 1 match against Marseille at Groupama Stadium, Lyon, France on 22/9/2024. Photo: Reuters
In a statement the same day, Lyon called the DNCG's decision "incomprehensible". "We have worked closely with the DNCG for several months, meeting their requirements with larger sums than requested," the club stated on its website. "We have also demonstrated success on the field with two consecutive seasons in European competitions. We don't understand how an administrative decision can relegate such a big club."
Lyon said they will appeal the DNCG's decision to participate in Ligue 1 next season.
Last year, another major French club, Bordeaux, went bankrupt and was relegated to the fourth division. In 2022, Bordeaux was also relegated to Ligue 2 by the DNCG.
Lyon won seven consecutive Ligue 1 titles from 2001 to 2008. During this period, they boasted stars like Michael Essien, Juninho, Florent Malouda, and Karim Benzema. In terms of French league titles, Lyon is currently ranked 6th, behind PSG (13), Marseille and Saint-Etienne (10), Monaco and Nantes (8). Following their domestic dominance, they reached the Champions League semi-finals twice, in 2010 and 2020.
Textor, a 59-year-old American billionaire, owned Lyon, Crystal Palace, and Botafogo. He sold his stake in Crystal Palace to billionaire Woody Johnson for 260 million USD because UEFA does not allow two clubs with the same owner to participate in the same competition. Both Lyon and Crystal Palace qualified for the 2025-2026 Europa League. He sold his stake so Palace could participate.
If the appeal is unsuccessful, Lyon will play in Ligue 2 next season. It's unclear whether they will be allowed to participate in the Europa League, as UEFA is still reviewing the club's financial situation.
According to French football expert Julien Laurens, Lyon's relegation is a "major earthquake" for French football. Laurens blames Textor, calling him one of the worst owners in the club's history. Lyon may also have to sell several players due to relegation, including Belgian international Malick Fofana.
Hoang An (via Sky Sports)
