Olympique Lyonnais have been officially relegated to Ligue 2 after French football’s financial watchdog, the DNCG, upheld its earlier ruling following an audit of the club’s finances.
The decision, initially made in November due to Lyon’s fragile financial position, was confirmed Tuesday after a meeting between DNCG officials and club owner John Textor.
Lyon criticized the ruling in a statement, insisting it had fully cooperated with the DNCG and met all financial requirements. The club said it would launch an immediate appeal.
“Olympique Lyonnais takes note of the incomprehensible decision handed down by the DNCG this evening and confirms that it will appeal immediately,” the club said.
“With demonstrated funds and sporting success that has earned us a place in European competition two years running, we sincerely fail to understand how an administrative decision could relegate such a great French club.”
The ruling comes a day after U.S. businessman Textor sold a 43% stake in English club Crystal Palace.
“Thanks to the equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved considerably and we have more than sufficient resources for the 2025-26 season,” the Lyon statement added.
In October, Textor’s Eagle Football Group reported debts totaling around 422 million pounds ($574.85 million), raising concerns about the French club’s financial stability.
Since then, Lyon have raised funds by selling several players, including Maxence Caqueret to Como and Rayan Cherki to Manchester City.
The club, however, has been unable to convince the authorities that its financial situation has improved enough for the sanctions to be lifted.
Textor, 59, offered a positive assessment of the club’s finances prior to the decision.
“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. Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably,” he told reporters earlier Tuesday.
Lyon, who were crowned French champions seven times between 2002 and 2008, qualified for next season’s Europa League after finishing sixth in Ligue 1.
If the decision stands, Stade de Reims, who were relegated from Ligue 1 in the playoffs after losing to Metz, will take Lyon’s spot in the top tier next season.
Neither Reims nor French football’s governing body, the LFP, was immediately available for comment.
