Lyon Relegated to Ligue 2 After Financial Watchdog Ruling; Club to Appeal Decision

French football giant Olympique Lyonnais has been relegated to Ligue 2 following a ruling by the National Directorate of Management Control (DNCG), the financial watchdog of French football, after the club failed to resolve ongoing financial irregularities. The decision, announced on June 24, 2025, marks the first time Lyon will play outside the top flight since 1989 and has sent shockwaves through French football.

Lyon, seven-time Ligue 1 champions, finished sixth in the 2024-25 Ligue 1 season but were unable to convince the DNCG that their financial situation had sufficiently improved since a provisional relegation was imposed in November 2024. Despite recent equity investments, player sales—including Rayan Cherki to Manchester City—and a reduction in the wage bill, the DNCG upheld its decision after a critical meeting attended by club president and majority owner John Textor.

Textor, who recently sold his 43% stake in English Premier League club Crystal Palace, expressed disbelief at the ruling and confirmed that Lyon will immediately appeal, stating, "We sincerely do not understand how an administrative decision could have relegated such a major French club. We will appeal to demonstrate our ability to provide the necessary financial resources to ensure OL's continued presence in Ligue 1".

The relegation could force a major overhaul of the squad, with key players such as Malick Fofana, Corentin Tolisso, Thiago Almada, Georges Mikautadze, Moussa Niakhaté, and Ainsley Maitland-Niles potentially leaving as the club seeks to stabilize its finances. Experts have described the situation as a "massive earthquake" for French football, highlighting the dramatic fall from grace for a club that dominated the domestic league from 2002 to 2008.

Lyon’s demotion also raises questions about their participation in next season’s Europa League, for which they had qualified by finishing sixth. If the relegation stands, Reims could take their place in Ligue 1.

In other Ligue 1 developments, Paul Pogba’s signing with Monaco has been widely praised, with expectations that the former Manchester United and Juventus midfielder will provide leadership and experience to the young squad, further enhancing the league’s profile and benefiting the French national team.

Lyon’s appeal process is expected to unfold in the coming weeks, but the club faces a race against time to present a convincing financial recovery plan and avoid a historic drop to the second tier.