After being provisionally demoted by the DNCG - the body that oversees the accounts of French professional clubs - in November, Lyon has now been officially relegated from Ligue 1 to Ligue 2.
Lyon representatives, including owner John Textor, met with the DNGC on Tuesday (24.06.25) but failed to persuade the commission that the club’s financial situation had improved enough to remove their sanctions.
In October, Textor’s Eagle Football Group - holder of a 77 per cent stake in Lyon - revealed debts totalling £422 million.
The seven-time French champions described the DNCG's decision as “incomprehensible”, and said it would be appealing the ruling.
In a statement, Lyon said: “Olympique Lyonnais acknowledges the incomprehensible decision handed down by the DNCG this evening and confirms that it will immediately appeal.
“With proven funds and sporting success that has earned us a place in European competition for two consecutive years, we sincerely do not understand how an administrative decision could relegate such a major French club.
“We will appeal to demonstrate our ability to provide the necessary financial resources to guarantee OL's place in Ligue 1.”
The club added Lyon’s finances had “improved significantly” after Textor sold his 43 per cent share of the Premier League team Crystal Palace to New York Jets owner Woody Johnson on Sunday (22.06.25), which is estimated to be worth close to £190 million.
Lyon has also released high earners like Alexandre Lacazette and Anthony Lopes to ease its financial situation.
The statement continued: “Over the past few months, we have worked closely with the DNCG, meeting all of its demands with equity investments in excess of the amounts requested.
“Thanks to equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025-26 season.”
Last week, Textor said he was confident Lyon’s financial position had been resolved, and had previously insisted there was “no chance” the club would be relegated to Ligue 2 last November.
