The seven-time Ligue 1 winners have been demoted to France’s second level.
According to an official notification from the Ligue de Football Professionnel, French heavyweights Lyon have been relegated to Ligue 2.
Despite finishing sixth in the French top league this season, seven-time Ligue 1 champions Lyon have been formally relegated to the second tier of French football.
The decision follows a meeting of the French FA, the Ligue de Football Professionnel (LFP), and the Direction Nationale du Contrôle de Gestion (DNCG) to discuss the club’s financial position.
It comes just one day after club owner John Textor agreed to sell all of his shares in Premier League side Crystal Palace to New York Jets owner Woody Johnson for more than £190 million.
However, the sale was insufficient to persuade French officials that the club’s financial status had improved, prompting them to relegate Lyon ahead of the following season.
Textor looked to be confident going into the meeting that the situation would be resolved and Lyon would continue in Ligue 1 the next season.
He stated: “You can see from our shareholders’ contributions that we have committed new funds, not only for the DNCG, but also for our UEFA licensing process. Not to mention the positive news about the Crystal Palace sale. Our cash situation has improved significantly.”
However, an official statement from the DNCG stated that this would not be the case, and Lyon would be forced to play football in the second tier next season.
The decision to relegate the French club provisionally came at the end of 2024, after it was determined that the team had made debuts worth more than €500 million (£426.3 million).
As a result, Lyon was barred from making any transfers, and DNCG took over the club’s payroll.
Lyon responded to the news by issuing an official statement on the club website saying that they will immediately file an appeal against the judgement.
It read: “Olympique Lyonnais accepts the DNCG’s incomprehensible decision tonight and confirms that it will immediately launch an appeal.
“In recent months, we have worked closely with the DNCG to meet all of its requirements with cash equity investments that exceeded the desired sums.
“Thanks to our shareholders’ equity contributions and the sale of Crystal Palace, our liquidity position has greatly improved, and we now have more than enough resources for the 2025/26 season.
“With so much cash liquidity exhibited and sporting excellence that has earned European competition in two consecutive years, we just do not comprehend how one administrative mistake could relegate such a magnificent French club.
“Through our appeal, we will establish our substantial cash resources as necessary for Olympique Lyonnais to keep its place in Ligue 1.”
As of now, it is unknown how this would affect Lyon’s participation in the Europa League next season, as well as the ongoing dilemma with Crystal Palace’s participation in European competitions.
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