Why Lyon Have Been Demoted to Ligue 2 Despite 6th place finish in Ligue 1
- French powerhouse Olympique Lyon have been relegated to Ligue 2 despite finishing sixth in Ligue 1
- The seven-time French champions were provisionally demoted in November last year, and their relegation has now been confirmed following further financial scrutiny
- Lyon said they will appeal the decision, but if it stands, Reims will take their place in Ligue 1 next season
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French giants Olympique Lyonnais have been relegated to Ligue 2 despite securing a sixth-place finish in the 2024/25 campaign.
The club's demotion was first announced by the DNCG, the body responsible for monitoring the financial health of French professional football teams, back in November.
Source: Getty Images
On Tuesday, Lyon officials, including majority owner John Textor, met with the DNCG but failed to convince them that the club's financial issues had been sufficiently resolved to overturn the decision.
In October, Textor’s Eagle Football Group, which holds a 77% stake in Lyon, revealed debts amounting to £422 million, per ESPN.
Why are Olympique Lyon getting relegated?
Lyon have been relegated to Ligue 2 due to financial difficulties, but the club has stated that it will appeal the decision.
In a statement, Lyon described the DNGC's ruling as "incomprehensible" in an official statement and confirmed they intend to appeal the decision.
Lyon left baffled by decision
"With secured funds and recent sporting success that earned us European qualification two years running, we genuinely cannot comprehend how an administrative ruling could relegate such a historic French club," Lyon said in a statement.
The club confirmed plans to appeal the decision, insisting they can provide the financial resources necessary to secure their Ligue 1 status.
In efforts to stabilise their finances, Lyon generated around £45m through the sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June, per The Guardian.
High-profile players like Alexandre Lacazette, and Anthony Lopes have also been released to cut costs.
Lyon's relegation could have major implications for English Premier League club Crystal Palace's Europa League hopes next season.
Under UEFA regulations, clubs owned by the same multi-club group are prohibited from competing in the same European tournament, which raised concerns about Crystal Palace’s participation due to their co-owner, John Textor, also owning Lyon.
However, Lyon’s recent relegation to Ligue 2, confirmed by France's financial regulator DNCG, has likely resolved this issue as the club will not participate in European competitions next season.
This development clears the way for Crystal Palace’s involvement in the Europa League, assuming no further complications arise.
That said, Lyon has appealed the relegation decision, which could potentially affect the situation if their appeal is successful.
Source: Getty Images
Lyon’s fall mirrors Bordeaux’s collapse
Only five clubs have won more French league titles than Lyon, who claimed seven consecutive Ligue 1 trophies between 2002 and 2008.
The giants of French football also reached the Champions League semi-finals as recently as 2020 and have not played in Ligue 2 since 1989.
Their dramatic demotion follows the fate of six-time champions Bordeaux, who lost professional status last year after financial collapse saw them relegated to the fourth tier.
Lyon freezes Nuamah's EPL move
In a previous publication, YEN.com.gh reported that Nuamah's move to Premier League outfit Everton has been halted by Lyon.
Nuamah was expected to join Everton in the January transfer window after talks with the Merseyside club.
Proofreading by Omoleye Omoruyi, copy editor at YEN.com.gh.
Source: YEN.com.gh
