Julius OkorieEmbattled Seven-time Ligue 1 Champions, Olympique Lyon, have finally been forced into relegation.
The National Committee for the Oversight and Financial Management of Clubs (DNCG) announced on Tuesday, June 24, the relegation of Olympique Lyon to Ligue 2 following a final review of the club’s financial records.
Join our WhatsApp ChannelThe decision comes after months of financial instability at Lyon, which has struggled under the weight of €175 million in debt.
Lyon have been under strict financial supervision since November 2024, operating with a recruitment freeze unless offset by player sales, tight restrictions on wage spending, and close monitoring of all financial transactions.
The club has the right to appeal the decision, and sources close to the matter say Lyon’s legal team is preparing a response in hopes of overturning the relegation ruling.
Tuesday’s announcement marks a significant low point in what has been a turbulent season for the French giants.
Lyon is owned by John Textor, who has sold his stake in Crystal Palace to New York Jets owner Woody Johnson.
Lyon have confirmed they will appeal against the “incomprehensible” decision to relegate them to Ligue 2 after failing to convince authorities they have resolved their financial difficulties.
The seven-time French champions were hit with a provisional relegation back in November after racking up massive debts, and although they have since sold a number of first-team players, French football watchdog the National Directorate of Management Control (DNCG) upheld the relegation following meetings on Tuesday.
The implications of this on Lyon’s Europa League place and any further implications for Crystal Palace’s place are currently unknown.
Lyon, who finished sixth in Ligue 1 last season, said in a statement: “Olympique Lyonnais acknowledges the incomprehensible decision handed down by the DNCG this evening and confirms that it will immediately appeal.
“Over the past few months, we have worked closely with the DNCG, meeting all of its demands with equity investments in excess of the amounts requested. Thanks to equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025/26 season.
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“With proven funds and sporting success that has earned us a place in European competition two years in a row, we sincerely do not understand how an administrative decision could have relegated such a major French club. We will appeal to demonstrate our ability to provide the necessary financial resources to ensure OL’s continued presence in Ligue 1.”
Textor told L’Equipe last week he was confident Lyon’s financial position had been resolved, having said back in November there was “no chance” the club would be relegated.
After receiving the provisional relegation last year, Lyon sold the likes of Said Benrahma, Anthony Lopes and Maxence Caqueret in January, and this summer they have already sold Rayan Cherki to Manchester City in a £34m deal.
Lyon winger Malick Fofana is a Chelsea target this summer after the Blues made an enquiry for the Belgium international.
Textor, who through his Eagle Football Holdings group also owns a significant stake in Botafogo, who are the current Brazilian and South American champions, initially invested in Palace in 2021.
It is left to be known whether Lyon relegation will affect Crystal Palace who qualified for the Europa League with their FA Cup triumph. Nottingham Forest wrote to UEFA regarding an alleged Eagles breach of multi-club ownership rules through co-owner John Textor.
UEFA rules say no individual can be ‘simultaneously be involved in any capacity’ for ‘more than one club’ in one of their competitions.
UEFA are now expected to ratify Palace’s participation in the Europa League by the end of this month.
Should they be given the green light, their European campaign will begin in the league phase on either September 24 or 25.
Julius Okorie is Chief Sports and Entertainment Correspondent for Prime Business Africa. He began his journalism career with the Champion Newspaper and Sporting Champion and later moved on to Daily Independent and the Nation Newspapers. Okorie joined Prime Business Africa in 2024 bringing on board 20 years of experience in writing investigative news on Sports and Entertainment. His well researched and highly informative articles on Sports Business and general entertainment are followed by a wide range of audience.
