In a seismic blow to French football, Olympique Lyonnais—seven-time Ligue 1 champions—have officially been relegated to Ligue 2 following a conclusive meeting with France’s financial watchdog, the DNCG (National Management Control Directorate). Despite determined financial maneuvers by the club’s owners, the decision is now public, sending shockwaves across Europe and throwing the club’s future into serious doubt.
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DNCG Decision: Financial Troubles Prove Too Deep
According to a report by RMC Sports, OL, alongside several Ligue 1 sides, were summoned before the DNCG to assess their economic sustainability. Lyon’s financial records revealed a staggering €500 million in debt—an alarming figure that spurred the regulatory body to enforce relegation, citing unsatisfactory improvements.
Initially, the club had only received a provisional demotion, with the hope that appropriate financial restructuring could reverse the ruling. However, after multiple attempts to convince the DNCG of their progress, the verdict has now been confirmed—Olympique Lyonnais will compete in Ligue 2 in the 2025–26 season, barring a successful appeal.
Eagle Football Group’s Rescue Attempts Fall Short
Ownership consortium Eagle Football Group, led by John Textor, made significant efforts to address the club’s liquidity issues. These included:
- The sale of Textor’s stake in Crystal Palace
- The transfer of ownership of Lyon’s women’s team
- An infusion of fresh capital by shareholders
Despite these measures, the DNCG concluded that Lyon’s financial outlook remained unstable. The governing body maintained its stringent stance on maintaining fiscal discipline within French football, emphasizing that no club, regardless of prestige, is immune from consequences.
Textor’s Optimism Not Enough to Alter the Outcome
Speaking after the initial DNCG hearing, John Textor appeared hopeful that the club had done enough to avoid relegation. He stated: “You can see from the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA licensing process.”
He also says, “Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably.” Despite the American investor’s confidence, the watchdog remained unconvinced.
Implications for Lyon: What Comes Next?
Lyon’s demotion marks a dramatic fall for a club that once dominated French football and regularly featured in the UEFA Champions League. The move will have immediate consequences:
- Loss of TV revenue and sponsorship deals
- Potential player exits to balance the books
- Challenges in retaining top managerial and coaching talent
- Reputational damage impacting future recruitment and fan morale
The club still has the right to appeal the decision, and that process is expected to unfold swiftly in the coming weeks.
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FAQs
Why was Lyon relegated to Ligue 2?
Due to mounting debts and failure to meet DNCG’s financial requirements, despite various restructuring efforts.
What is DNCG?
The DNCG is France’s football financial watchdog that monitors clubs’ economic health and enforces regulations.
Can Lyon appeal the ruling?
Yes, the club retains the right to appeal the DNCG’s decision before the 2025–26 season begins.
What steps did Lyon take to avoid relegation?
They sold assets, including stakes in Crystal Palace and their women’s team, and raised fresh capital via shareholders.
How will this affect French football?
Lyon’s demotion is a major blow to the league’s competitiveness and could signal a stricter enforcement era by the DNCG.
