Seven-time French champions Lyon will remain in Ligue 1 next season after winning their appeal against a financial watchdog’s decision to relegate them, the French Football Federation (FFF) announced on Wednesday.
Last month, Lyon were demoted to Ligue 2 due to budgetary concerns raised by French football’s financial oversight body, which had placed the club under restrictions last November. However, following an appeal and changes in leadership, the club’s top-flight status has been restored—though with conditions.
The FFF stated that Lyon must reduce their wage bill and limit transfer spending for the upcoming campaign as part of the ruling.
“Lyon would like to thank the appeal commission after it recognised the ambition of the new club management,” the club said in a statement. “Today’s decision constitutes the first step of re-establishing trust in Lyon.”
The decision follows a shift in leadership, with American businesswoman Michele Kang recently replacing John Textor as club president. Kang, already president of Lyon’s women’s team and the second-largest shareholder, is expected to steer the club through a new phase of financial restructuring.
Two weeks earlier, Textor, who became majority owner in December 2022, announced he would step back from daily operations. He had purchased the club from long-time president Jean-Michel Aulas, who led Lyon to seven straight Ligue 1 titles from 2002 to 2008.
While Lyon finished sixth last season and qualified for the UEFA Europa League, they had already agreed to pay a fine to UEFA for breaching financial rules. Following the appeal win, they will still be allowed to compete in the competition.
Club legend Aulas praised Kang’s leadership and vision for the future. “Michele Kang has been able to provide, with courage, the guarantees needed to preserve the future of the club,” he posted on social media. “But the most difficult part is to come. A new period is underway, one of reconstruction.”
In response to financial demands, Lyon have made several cost-cutting moves. Key players including striker Alexandre Lacazette and goalkeeper Anthony Lopes have been released. Rayan Cherki has been sold to Manchester City, while Maxence Caqueret has joined Italian side Como.
Textor’s Eagle Football group has invested €83 million ($97 million) into the club. He has also sold his 43% stake in Crystal Palace as part of broader efforts to balance Lyon’s finances. He remains involved with Brazilian side Botafogo and Belgian club Molenbeek.
Lyon began pre-season on Monday and will kick off their Ligue 1 campaign with a visit to Lens between August 15 and 17.
