Seven-time Ligue 1 champions Olympique Lyonnais have been relegated to the French second division by the country’s financial watchdog, the DNCG (National Directorate of Management Control), the French professional league (LFP) announced on Tuesday.
The shock decision comes despite Lyon’s sixth-place finish in the 2023/24 Ligue 1 season, which earned them a spot in next season’s UEFA Europa League. However, during a crucial hearing earlier in the day, the club failed to convince the DNCG to lift financial restrictions initially imposed in November 2023.
Lyon, who have not played in Ligue 2 since 1989, can still appeal the ruling.
Club president John Textor had expressed confidence before the meeting, saying: “We have made a variety of investments in recent weeks. Everything is good financially.” Textor recently sold his 43% stake in Premier League side Crystal Palace and oversaw significant cost-cutting at Lyon, including reducing the wage bill and selling key players Rayan Cherki to Manchester City and Maxence Caqueret to Como.
Despite these efforts, the DNCG ruled the club’s financial position insufficient to maintain top-flight status. If the relegation is upheld on appeal, Reims would reportedly be promoted to Ligue 1 in their place.
Lyon dominated French football in the early 2000s, winning seven consecutive Ligue 1 titles from 2002 to 2008. Only five clubs have won more league titles in France, with Paris Saint-Germain leading the record books with 13.
The decision marks a dramatic downturn for one of France’s most historic clubs and casts uncertainty over their immediate future both domestically and in European competition.
