Olympique Lyonnais, a perennial heavyweight in French football, has received a severe blow from the National Directorate of Management Control (DNCG), the body overseeing the financial health of French clubs. The club has been formally relegated to Ligue 2, a decision stemming from ongoing financial management concerns.
This isn`t the first time Lyon has faced scrutiny; the DNCG had provisionally relegated them seven months prior, initiating a period of intense pressure on the club and its ownership to rectify their financial standing. Despite efforts described by the club, the final ruling delivered this week by the DNCG confirmed the demotion.
In response, Lyon has promptly announced its intention to appeal the decision. In a public statement, the club expressed profound disagreement, labeling the ruling “incomprehensible.” They contend that they have diligently worked with the DNCG, fulfilling all requests, including significant equity injections exceeding required amounts from shareholders.
Owner and President John Textor, who reportedly attended the DNCG hearing, has been actively involved in attempting to shore up the club`s finances. Recent measures include strategic player sales, such as the reported multi-million-dollar transfer of Rayan Cherki. Furthermore, Textor`s move to divest his stake in England`s Crystal Palace, another club under his Eagle Football Holdings umbrella, for a significant sum, was cited by Lyon as evidence of improved liquidity.
Lyon`s argument hinges on their demonstrated cash liquidity, which they believe is more than sufficient for the upcoming seasons. The club`s statement highlighted that funds derived from shareholder contributions and the Crystal Palace sale have substantially bolstered their cash position.
Adding a layer of peculiar irony to the situation, Lyon finished the recent 2024-25 Ligue 1 campaign in sixth place, a position that actually qualifies them for the UEFA Europa League group phase next season. This presents a stark and unusual contrast: a club seemingly competitive enough on the pitch for European competition is simultaneously deemed financially unstable by domestic regulators to remain in the top tier.
The club maintains that their substantial cash resources should be the decisive factor in retaining their Ligue 1 status, asserting that the administrative decision contradicts their financial reality and recent sporting achievements. The appeal process will now become the critical battleground where Lyon will seek to overturn this potentially devastating relegation and restore what they see as their rightful place in the top flight.
