Olympique Lyonnais have been relegated to the Ligue 2
For the first time in over three decades, Olympique Lyonnais, one of France’s most iconic football clubs, face the prospect of playing in Ligue 2.
On Tuesday, June 24, 2025, the French football authorities confirmed the club’s administrative relegation due to long-standing financial difficulties and failure to meet regulatory requirements.
But how did a club of such stature and history get here?
The financial collapse
Lyon’s troubles began last autumn when they reported a staggering debt of €505 million, including over €160 million in short-term liabilities, a sharp €61 million increase from the previous year.
This financial instability triggered alarm bells at the Direction Nationale du Contrôle de Gestion (DNCG), French football’s financial watchdog.
The DNCG provisionally relegated Lyon in November 2024, pending efforts to resolve their fiscal issues.
Since then, club officials, including President John Textor and sporting director Michael Gerlinger, have scrambled to convince the authorities otherwise, without success.
Failed efforts to reverse the decision
Despite selling their American NWSL side OL Reign and even parting with their shares in the Groupama Stadium (OL Vallée Arena), Lyon’s financial fixes weren’t enough, or perhaps came too late.
A final plea to the DNCG earlier this week reportedly failed to sway the panel, despite Textor’s optimism.
“We’ve made various investments in recent weeks. Everything is good financially,” he told L’Équipe just days before the ruling.
Those investments included Textor selling his 45% stake in Premier League side Crystal Palace for €200 million, and the €42 million transfer of Rayan Cherki to Manchester City.
Still, the DNCG was not persuaded. Their decision to uphold the relegation means Lyon will now drop to Ligue 2, unless a final appeal, which the club intends to lodge, proves successful.
What now for Lyon?
Lyon’s fate currently hangs in the balance. If the appeal fails, the club must begin life in Ligue 2 next season.
That will likely trigger a summer of tough decisions, balancing the books while trying to maintain a squad competitive enough to secure immediate promotion.
The sale of Rayan Cherki may help financially, but weakens the team. Further exits could follow, with big earners like Alexandre Lacazette, Nemanja Matic, and Corentin Tolisso reportedly among those who could be moved to ease financial strain.
Adding to the uncertainty, Lyon’s spot in next season’s UEFA Europa League is now under review. The UEFA Club Financial Control Board has yet to assess their eligibility, and if denied, their place could go to RC Strasbourg.
A fall from grace
From a dominant side that once won seven consecutive Ligue 1 titles in the 2000s, Olympique Lyonnais now find themselves on the brink of crisis.
The road to redemption will require not just financial restructuring but also a reimagining of the club’s identity and long-term vision.
For now, Lyon must wait and hope that their appeal can turn the tide. If not, next season’s journey through the second tier of French football will be as humbling as it is historic.
FKA/EB
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