Olympique Lyonnais relegated Ligue 1 after financial watchdog ruling

Olympique Lyonnais relegated to Ligue 2 after DNCG rules finances insufficient. Club may appeal but faces uncertain future despite recent asset sales

[dropcap]O[/dropcap]lympique Lyonnais relegated to Ligue 2 after the DNCG, France’s football financial watchdog, ruled that the club’s financial structure no longer met the standards required to stay in Ligue 1.

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Despite last-minute efforts to stabilise the situation, the ruling has pushed one of France’s most decorated football clubs into uncertainty.

Earlier this month, the DNCG warned that Lyon could face demotion unless significant financial changes were made. In response, the club’s parent company, Eagle Football Group, acted swiftly.

It oversaw the sale of John Textor’s stake in English Premier League club Crystal Palace and divested the Lyon women’s team, widely regarded as one of the most successful women’s sides in Europe.

These decisions aimed to boost the club’s liquidity and reassure regulators of its financial health. Lyon’s owner, John Textor, remained publicly optimistic, citing fresh capital injections and new shareholder commitments as proof of progress.

He also referenced improvements in UEFA licensing processes to support his claim that the club was on firmer financial ground.

However, the DNCG was unconvinced. After completing its review, it concluded that Lyon had not sufficiently improved its fiscal status and confirmed their relegation.

This marks a dramatic and painful chapter in the club’s history. Lyon, once a mainstay in top-flight European football and a regular contender in UEFA competitions, must now prepare for life in the second tier of French football.

Still, there may be a lifeline. Lyon are expected to file an appeal in the coming days. If successful, and if they present a convincing case with concrete financial guarantees, they could retain their Ligue 1 status.

For now, though, their place in the top division is lost, pending a favourable outcome.

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Olympique Lyonnais now face not just sporting consequences but a battle for stability and survival. A club with legacy and loyal support stands on the edge, hoping for a last-minute turnaround before the next season begins.