French giants Lyon relegated from Ligue 1 amid financial troubles

Ligue 1 side Olympique Lyonnais have been relegated to France’s second tier after authorities determined the club had not resolved their long-standing financial woes.

The French giants were handed a provisional relegation back in November having amassed massive debts of £200 million, but were confident of avoiding expulsion during the remainder of the season.

Indeed, the club’s American owner John Textor reassured fans earlier this year that there was “no chance” Lyon would be punished.

Lyon have confirmed they will appeal the decision

After the club underwent a major fire sale of first-team players in January, it seemed that Textor’s promise would be delivered.

Key players such as former West Ham winger Saïd Benrahma, French youth international Maxence Caqueret, and Nigerian striker Gift Orban all departed for sizeable fees, while the lucrative contract of long-serving goalkeeper Anthony Lopes was annulled.

Earlier this month, the fire sale continued as playmaker Rayan Cherki left for Manchester City in a deal worth up to £34 million.

Despite the substantial transfer turnover, and the promise of earning further prize money through the club’s recent qualification for next season’s UEFA Europa League, it seems Lyon have been unable to avoid their fate.

On Tuesday, France’s football watchdog, the National Directorate of Management Control (DNCG), upheld their relegation, meaning the seven-time French champions will be competing in Ligue 2 as things stand next campaign.

Lyon have confirmed they will appeal the decision, which they have branded as “incomprehensible”.

The watchdog’s decision comes just a day after Textor sold his minority stake in recent FA Cup winners Crystal Palace to New York Jets owner, Woody Johnson.

Textor’s minority ownership of Palace has casted doubt over the South Londoners’ eligibility to participate in the Europa League alongside Lyon next season, owing to UEFA’s rules preventing multi-club ownership models from playing in the same European competition.

Lyon will become the second high-profile relegation through financial difficulties in France in a number of years

The sale of Textor’s Palace stake still requires approval from both the Premier League and the Women’s Super League, but no roadblocks are expected. If approved, the Eagles’ Europa League berth will likely be confirmed, but it is still unclear whether Lyon’s Ligue 2 relegation will affect their own participation hopes.

If their appeal proves unsuccessful, Lyon will become the second high-profile relegation through financial difficulties in France in a number of years. After the conclusion of the 2023/24 season, six-time French champions Girondins de Bordeaux were forcibly relegated to the country’s fourth tier after entering administration.