June 24, (THEWILL) – Olympique Lyonnais have been administratively relegated to Ligue 2 by France’s National Directorate of Management Control (DNCG), following the club’s failure to resolve mounting financial difficulties. The decision, confirmed on Tuesday, stems from Lyon’s inability to provide adequate guarantees against their €175 million debt burden, which first prompted warnings from the regulatory body in November 2024. Club president, John Textor, and director of football, Mickael Gerlinger, attended a hearing this week in an unsuccessful attempt to overturn the initial ruling.
The American businessman, Textor, had previously maintained confidence in the club’s financial projections, claiming Lyon would generate “several hundred million euros in the coming months” to address their obligations. Recent efforts to stabilise the club’s finances included the sale of Textor’s 43 percent stake in Crystal Palace earlier this week, alongside player departures such as Rayan Cherki’s transfer to Manchester City and Maxence Caqueret’s move to Como. The club also implemented salary reductions across their squad to reduce operational costs.
Lyon’s relegation creates significant complications for French football’s European competitions, given the club qualified for the 2025-26 Europa League after finishing sixth in Ligue 1 this season. Should the punishment be upheld following any potential appeal, Reims would replace Lyon in the top flight for the upcoming campaign. The decision affects not only the club’s domestic status, but also raises questions about their European participation rights.
Paulo Fonseca’s side now face the prospect of competing in France’s second division unless they can successfully overturn the DNCG’s ruling through the appeals process. The regulatory body’s intervention reflects broader concerns about financial sustainability in French football, with several clubs having faced similar scrutiny in recent years. Lyon’s situation represents one of the most high-profile cases of administrative action taken against a major European club for financial irregularities.
The relegation threatens to compound Lyon’s financial problems, given the reduced television revenue and commercial opportunities associated with second-tier football. The club’s ability to retain key players and coaching staff will likely depend on whether they can mount a successful legal challenge to the DNCG’s decision. French football authorities maintain that such measures are necessary to ensure long-term financial stability across the domestic league system.
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
