Lyon relegated to French Ligue 2 as league bosses drop bombshell

Seven-time French champions Lyon were relegated to Ligue 2 on Tuesday night after failing to provide financial guarantees to the game’s watchdog.

Lyon are one of the biggest clubs in France and have been in the top flight of French football since 1989/90, but as things stand they will be plying their trade in the second tier following an audit of their finances.

The club have already confirmed they will immediately appeal the decision.

The team, who finished sixth in Ligue 1 last season, were provisionally relegated by the National Directorate of Management Control (DNCG), who have now rubber-stamped that decision.

A statement from the club reads: “Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.

“In recent months, we have worked closely with the DNCG, satisfying all of its requests with cash equity investments exceeding the amounts requested. Thanks to the equity contributions of our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025/26 season.

“With so much cash liquidity demonstrated, and sporting success which has earned European competition in two consecutive years, we sincerely do not understand how one administrative decision could relegate such a great French club. Through our appeal, we will establish our substantial cash resources as necessary for Olympique Lyonnais to keep its place in Ligue 1.”

The decision comes just a day after Lyon owner John Textor sold his shares in Crystal Palace to New York Jets chief Woody Johnson – in an attempt to ensure the Premier League side take their place in the Europa League.

Palace’s place in the competition was at risk because Textor had shares in both Lyon and Palace – with the two teams set to enter the same tournament. However, it was understood that because the ownership change happened after the March 1 deadline it would have little impact on UEFA’s final decision.

Lyon’s financial position saw them sell star man Rayan Cherki to Manchester City for around £34million. Maxence Caqueret was also sold to Como in January, handing the club around £45m in total.

High earners Alexandre Lacazette and Anthony Lopes were also released in a bid to reduce their wage bill, but Lyon have still been penalised in one of the most brutal ways possible.