Seven-time Ligue 1 champions Olympique Lyonnais have officially announced their decision to appeal a relegation ruling imposed by French football’s financial oversight body, the Direction Nationale du Contrôle de Gestion (DNCG). The development marks a dramatic turn for the historic club, which has not played outside France’s top division since 1989.
During a critical hearing held on Tuesday, Lyon failed to persuade the DNCG to lift the financial restrictions placed on the club last November. Despite efforts to address the watchdog’s concerns, the regulatory body opted to maintain its sanctions, including the enforced demotion to Ligue 2 for the 2025/2026 season.
Lyon Vows to Challenge Decision
In a formal statement released after the hearing, Lyon emphasized their compliance with the DNCG’s financial requirements, stating,
“Over the past few months, we have worked in close collaboration with the DNCG, fulfilling all conditions and even surpassing their equity investment demands.”
Lyon’s president, John Textor, expressed confidence that the club would successfully overturn the relegation ruling.
“Our liquidity situation has improved considerably,” he said, reinforcing the club’s financial viability and operational stability.
Ownership and Investments
American businessman John Textor acquired majority control of Lyon in December 2022, taking over from longtime president Jean-Michel Aulas, under whose leadership the club enjoyed a golden era. Between 2002 and 2008, Lyon captured seven consecutive Ligue 1 titles, cementing its reputation as one of France’s most successful clubs.
Textor, who also owns stakes in Brazilian club Botafogo and Belgian side RWD Molenbeek, recently sold his 43% share in Crystal Palace—a Premier League team—to Woody Johnson, owner of the NFL’s New York Jets, for a reported £190 million. This transaction has further bolstered Lyon’s financial standing.
Moreover, Eagle Football Holdings, Textor’s investment group, has injected an additional €83 million into the French club to support its operations ahead of the new season.
“Thanks to new equity injections and the sale of our stake in Crystal Palace, our cash reserves are now more than sufficient to fund the 2025/2026 campaign,” the club reiterated.
Player Departures and Cost Cutting
In line with cost-saving measures, Lyon has already begun reshaping its squad. Veteran forward Alexandre Lacazette and goalkeeper Anthony Lopes have been released to reduce the wage bill. Additionally, rising stars Rayan Cherki and Maxence Caqueret have been sold—Cherki to Manchester City and Caqueret to Como, respectively.
These moves signal the club’s intent to balance its books while maintaining competitiveness on the pitch.
A Bitter Pill for Supporters
The potential relegation of Lyon, a powerhouse in French football, has sent shockwaves through the fanbase and wider football community. Former president Jean-Michel Aulas took to social media to express his heartbreak over the situation.
“It’s a terrible blow to all those who love Lyon,” Aulas wrote on X (formerly Twitter).
“For 36 years, I worked to prevent such a situation. I gave everything to build a financially stable, respected, and ambitious club. Today, I am overwhelmed with sadness and complete disbelief.”
European Qualification and Uncertainty
Despite the DNCG’s ruling, Lyon qualified for the UEFA Europa League after finishing sixth in Ligue 1 last season. However, if the relegation is upheld, they could be replaced in Ligue 1 by Stade de Reims, creating a ripple effect across French and European football.
Only five clubs in France have more league titles than Lyon. Paris Saint-Germain, the record holders, lead the tally with 13 Ligue 1 championships.
What Lies Ahead
Lyon has already scheduled the start of their pre-season preparations for July 7, although their Ligue 1 status remains in limbo pending the outcome of the appeal. The club’s legal and financial teams are expected to act swiftly to challenge the DNCG’s decision, hoping to secure their rightful place in France’s top tier for the upcoming season.
For now, fans, players, and stakeholders anxiously await a final ruling that could define the future of one of France’s most iconic football institutions.
