Olympique Lyon, one of France's most decorated football clubs, is facing a stunning setback: relegation to Ligue 2. This decision, handed down by the French football financial watchdog, the DNCG (Direction Nationale du Contrôle de Gestion), has sent shockwaves through the footballing world. The seven-time Ligue 1 champions, who dominated French football in the early 2000s, now face an uncertain future in the second tier.
The DNCG's decision stems from concerns over Lyon's financial health. The club has reportedly accumulated debts exceeding €500 million. The watchdog provisionally relegated Lyon in November 2024 and, despite the club's attempts to demonstrate improved finances, upheld the decision after a recent review. The DNCG was not convinced by the measures taken, leading to the confirmation of the relegation.
Lyon's ownership, led by American businessman John Textor, has been under increased scrutiny. Textor's Eagle Football Group reportedly activated financial levers, including the sale of his stake in Crystal Palace, to reassure the DNCG. Lyon also sold players, including Rayan Cherki to Manchester City and Maxence Caqueret to Como, to generate funds and reduce their salary bill. Despite these efforts, the DNCG deemed them insufficient to alleviate their financial woes.
The club has expressed its shock and disagreement with the ruling, labeling it "incomprehensible" and confirming their intention to appeal immediately. Lyon insists that they have worked closely with the DNCG, meeting all their requests and demonstrating improved financial stability through shareholder contributions and player sales. They also highlight their sporting success, which saw them secure a Europa League spot for the upcoming season after finishing sixth in Ligue 1.
If Lyon's appeal is unsuccessful, their relegation will have significant consequences. Firstly, their place in the Europa League would likely be taken by Stade de Reims. Secondly, it would mark a dramatic fall from grace for a club that consistently competed at the highest level of French and European football for decades. It raises questions about the financial management of the club and the sustainability of its current ownership model.
This situation also casts a shadow over other French clubs facing financial scrutiny. Several Ligue 1 teams recently appeared before the DNCG to address concerns about their financial health. While Monaco, Nantes, and Paris FC avoided punishment, Lyon's fate serves as a stark reminder of the importance of sound financial management in football.
The coming weeks will be crucial as Lyon prepares its appeal. The club will need to present a compelling case to overturn the DNCG's decision and avoid a season in Ligue 2. The outcome will have far-reaching implications for the club, its players, its fans, and the landscape of French football. The situation is a stark reminder of the financial realities that underpin the beautiful game, and the potential consequences for even the most successful clubs.
