In a stunning turn of events, seven-time French champions Lyon have been relegated to Ligue 2 due to ongoing financial woes. The decision, confirmed by the National Directorate of Management Control (DNCG), the financial watchdog of French football, marks a historic low for one of France's most decorated clubs. Despite Lyon's attempts to improve their financial standing, the DNCG's decision was ultimately upheld, leading to the club's administrative relegation. Lyon can still appeal the decision.

The roots of Lyon's financial crisis can be traced back to a debt of €175 million. Back in November 2024, the DNCG had already warned Lyon, giving them a deadline to resolve their debt issues. The club's financial situation has been under scrutiny for months, with the DNCG initially raising concerns in November of last year. At that time, the organization warned that Lyon would face relegation if they failed to provide the necessary financial guarantees.

Eagle Football Group, the consortium that owns OL, has taken several financial measures in an effort to convince the DNCG of significant improvement in the club's financial health. Majority owner John Textor has sold his stake in Premier League side Crystal Palace, and Lyon's women's team but has still fallen short of the necessary requirements. These measures, however, proved insufficient to satisfy the DNCG, leading to the club's demotion.

Despite the severity of the situation, Textor had expressed optimism about the club's financial position. He highlighted investments from shareholders and the sale of his stake in Crystal Palace as positive steps toward improving liquidity. However, the DNCG's decision indicates that these efforts did not meet the required conditions for financial stability.

Lyon's relegation sends shockwaves through French football. The club's rich history includes a period of dominance in the early 2000s, during which they won seven consecutive Ligue 1 titles (2002-2008). They have also won five French Cups, eight Super Cups, and one League Cup. In addition to their domestic success, Lyon has been a regular participant in the UEFA Champions League, even reaching the semi-finals as recently as 2020. Over the years, the club has been home to a number of legendary players, including Karim Benzema, Hugo Lloris, Alexandre Lacazette, Juninho Pernambucano to name a few.

The relegation represents more than just a sporting setback for Lyon; it signifies a structural crisis for a club that was once considered a model organization in France. The club now faces the daunting task of rebuilding and navigating the challenges of Ligue 2, with the hope of returning to the top flight in the future.