Olympique Lyonnais has been formally relegated to Ligue 2 after a meeting with the DNCG. The seven-time Ligue 1 champs will now compete in France’s second division tournament.
Lyon received a provisional relegation to the second level at the latest meeting with the French football finance body. This was owing to their financial predicament, and the demotion has now been confirmed because it has not improved.
Eagle Football Group used a variety of tactics to convince the DNCG (National Management Control Directorate) that the club’s financial status had greatly improved. John Textor sold his ownership in both Premier League club Crystal Palace and Lyon women’s football, but it wasn’t enough.
Lyon was relegated from Ligue 1.
An appeal could follow.
After speaking with the authorities, Textor appeared to be assured. Speaking to the media, the American businessman claimed (according to Get French Football News)
“As evidenced by our shareholders’ contributions, we have committed new capital in both the DNCG and our UEFA license process. Not to mention the positive news about the Crystal Palace sale. Our cash situation has improved significantly.”
According to Fabrizio Romano, Lyon has the option to appeal the verdict. However, as things stand, they will compete in the second tier of French football. The decision to provisionally relegate the team occurred in late 2024, when it was revealed that debts of more than €500 million had been accumulated. Following the transfer restriction, DNCG took control of Lyon’s payroll.
It is not the first time a major French team has slipped down a division in recent years; Bordeaux has dropped as low as the fourth tier in France. They filed for bankruptcy after failing to raise £40 million to balance the books.
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