In a seismic development for French football, Olympique Lyonnais, one of the country’s most decorated clubs, has been officially relegated to Ligue 2 due to financial irregularities. The decision was confirmed on June 24, 2025, by the Ligue de Football Professionnel (LFP), following a meeting with the National Directorate of Management Control (DNCG), the financial watchdog overseeing professional clubs in France.
The ruling marks a significant and historic fall from grace for Lyon, who have won Ligue 1 seven times and enjoyed over two decades of top-flight stability. The DNCG’s verdict follows a period of intense financial scrutiny in which Lyon had been given provisional warnings to rectify their deteriorating accounts or face automatic relegation.
Despite the best efforts of Eagle Football Group—the consortium that owns the club—Lyon failed to meet the financial criteria required to maintain their Ligue 1 status. Eagle Football had attempted to pull various financial levers, including the sale of club owner John Textor’s stake in Premier League side Crystal Palace, as well as the sale of Lyon’s women’s team, in hopes of demonstrating financial improvement.
Textor, speaking optimistically to the press after the recent DNCG hearing, had insisted that the club’s liquidity had significantly improved. “You can see from the contributions of our shareholders,” he said. “We have invested new capital, not only for the DNCG, but also for our UEFA licensing process. Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably.”
However, those efforts failed to satisfy the DNCG, which concluded that the club’s financial structure remained unstable and unsustainable in its current form.
The fall to Ligue 2 will send shockwaves through French football, where Lyon has long been regarded as one of the sport’s powerhouses. Founded in 1950, the club rose to prominence in the early 2000s, winning seven consecutive Ligue 1 titles from 2002 to 2008—still a French football record.
Beyond domestic dominance, Lyon has been a staple in European competition, regularly qualifying for the UEFA Champions League and reaching the semi-finals twice—in 2009–10 and most recently in 2019–20. They have also claimed three Ligue 2 titles, five French Cups, one League Cup, and eight French Super Cups.
Despite this glittering legacy, the club has faced mounting financial strain in recent years. The COVID-19 pandemic, combined with dwindling revenues and costly investments, placed Lyon under significant pressure. Textor’s takeover was initially seen as a potential lifeline, but financial governance by the DNCG has remained stringent—ultimately deciding that the club had not done enough to avoid relegation.
With this ruling, Lyon will now compete in Ligue 2 for the 2025–26 season, a dramatic shift in fortune that will affect players, staff, sponsors, and fans alike. Key players may seek exits to remain in top-flight football, while the club’s revenue from broadcasting, ticketing, and sponsorship will likely take a substantial hit.
There is no immediate indication that the DNCG’s decision will be overturned or appealed, as the ruling is considered final. Lyon must now begin the arduous process of rebuilding both financially and competitively.
Supporters of the Rhône-based club are understandably dismayed. Many took to social media to express heartbreak and disbelief. Some, however, expressed cautious optimism that the drop might serve as a necessary reset for a club that once set the standard in French football.
Olympique Lyon now faces the challenge of reclaiming its place among France’s elite. But first, they must come to terms with a stunning and historic relegation that has reshaped the landscape of Ligue 1.
