Lyon Relegated to French Ligue 2 Over Financial Troubles

After the investigation and interviews of the owners, the Lyon side is now relegated to tier 2 of the French Football. The decision was made over the club’s financial problems, the French Professional League announced (LFP) announced on Tuesday. Lyon confirmed they will appeal the decision.

Team owners and director of football at Lyon – American businessman John Textor and Mickael Gerlinger, were interviewed by The DNCG (National Directorate of Management Control). The DNCG is the French financial regulator in charge of overseeing the accounts and financial health of all professional clubs. After the interview, the decision was made public, stating that the club needs to strengthen its financial muscle to continue playing at the highest level.

This is not the first time Lyon has faced harsh treatment. In November 2024, the DNCG provisionally relegated Lyon due to huge debts on the books. The amount resulted as a total of €175 million ($203.34 million) negative financial state. Moreover, DNCG couldn’t see any corrective actions from the club on how to reduce it. Moreover, a transfer ban was also imposed in the January transfer window.

Also Read: 5 Reasons Why FIFA Club World Cup has Been Underwhelming so Far.

While Lyon is looking to appeal the ruling, there is a glimmer of hope for the side to better its financial status with that New York Jets owner, Woody Johnson, who signed “a legally binding contract” to buy Textor’s share in EPL side Crystal Palace. Textor sold his 43% stake in the London club for $254 million. This surpasses the total debt, and recent sales of a few players would allow the side to reclaim its position in the Ligue 1.

As of now, the relegation means Lyon can’t compete in the 2025-26 UEFA Europa League even after directly qualifying with a sixth-place finish. The final decision over Lyon’s appeal will determine whether the side will be part of the Ligue 1 and play in the UEFA games or whether they will have to climb back to the top-tier once again.

Kushal

Passionate about the game and driven by storytelling, Kushal is a seasoned sports news and analysis writer with a knack for breaking down the big plays and spotlighting rising stars.

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