Seven-time French champions Lyon relegated over finances

Due to their poor financial condition, French club Lyon has been demoted to Ligue 2.

The DNGC, the organization overseeing the finances of French professional football clubs, provisibly demoted the team in November.

On Tuesday, Lyon officials, including owner John Textor, met with the DNGC, but they were unable to persuade them that the club’s financial situation had sufficiently improved to remove the sanction.

His Eagle Football Group, which owns a 77% stake in Lyon, announced debts in the amount of £422 million in October.

Lyon stated in a statement that they would file an appeal and that the DNGC’s decision was “incomprehensible.”

We sincerely do not understand how an administrative decision could relegate such a significant French club, the club said. “With proven funds and sporting success that has earned us a place in European competition for two consecutive years, we do not understand how an administrative decision could be made,” the club said.

“We will make an appeal to demonstrate our capacity to provide the financial resources needed to ensure OL’s place in the league.”

In an effort to improve their finances, Lyon, the seven-time French champion, sold Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June raising around £45 million.

Additionally, Anthony Lopes and Alexandre Lacazette, two high-profile figures, have been released.

Lyon has the ability to challenge the decision. Reims, who lost to Metz in the relegation play-off, will take Lyon’s place in the top flight if things go as planned.

Only five teams have won more French titles than Lyon, including seven that they won in successive seasons between 2002 and 2008.

The club hasn’t played in the second tier since 1989 and reached the Champions League semi-finals as recently as 2020.

Textor reiterated his confidence before Tuesday’s meeting that there was “no chance” the club would be relegated following the provisional punishment that was implemented in November.

In recent weeks, he said, “We have made a variety of investments.” “Financially speaking, everything is good.”

Even though he agreed a deal to sell his 46% stake in the Eagles on Monday, Textor is also the largest shareholder of Brazilian soccer team Botafogo and co-owner of Premier League team Crystal Palace.

We have collaborated closely with the DNCG over the past few months, and we have met all of its needs with equity investments that have exceeded the required funds, Lyon’s statement continued.

Our cash flow has significantly improved, and we now have more than enough financial resources for the 2025-26 season, according to our shareholders’ capital injections and the sale of Crystal Palace.

Palace won the FA Cup to advance to the Europa League, but Lyon also qualified by finishing sixth overall.

Textor’s alleged involvement with both clubs could be infringe on Uefa regulations, which prohibit the use of multiple teams with one, multi-club ownership structure when competing in the same European competition.

The Eagles hope that this will be avoided by Textor’s choice to sell his stake to Woody Johnson, the owner of the New York Jets.