Olympique Lyon, a major and historically successful French football club, has been officially relegated to Ligue 2 for the 2025-26 season.
The decision was announced by the Direction Nationale du Controle de Gestion (DNCG), the body responsible for overseeing the financial health of French football clubs, via the Ligue de Football Professional (LFP). This follows a provisional administrative relegation handed down in November due to significant financial concerns. At that time, the club was prohibited from making new signings during the subsequent January transfer window and was warned that relegation was a possibility if their financial issues were not resolved.
As Lyon failed to demonstrate sufficient improvement in their financial situation as required by the DNCG, the demotion to France`s second division has been confirmed. The DNCG also reviewed the finances of other Ligue 1 clubs, including AS Monaco, FC Nantes, and Paris FC, but ultimately took no action against them.
Olympique Lyon will have the opportunity to appeal the decision.
The initial provisional ruling in November primarily concerned John Textor, the American businessman whose Eagle Football Group holds a 77% majority stake in Lyon. The final decision for Lyon`s relegation comes shortly after EFG completed the sale of their stake in English club Crystal Palace. Textor also maintains a controlling interest in Brazilian side Botafogo.
Historically, Lyon was a dominant force in French football, winning seven consecutive Ligue 1 titles between 2001 and 2008. They have also reached the semi-finals of the UEFA Champions League on two occasions, most recently in 2020. In a recent significant transfer, the club sold promising young player Rayan Cherki to Manchester City.
