Once a dominant force in French football, Lyon’s descent into Ligue 2 follows a protracted battle with mounting debt, which last year soared above €500 million (approximately £418 million).

The DNCG’s latest review has now confirmed their demotion after previously handing down a provisional relegation order in November 2024.

While other top-tier clubs including Monaco, Nantes, and Paris FC also faced scrutiny from the DNCG, they have been cleared to remain in the top flight. Lyon, however, could not satisfy the financial body’s demands despite multiple attempts by owners Eagle Football Group to steady the ship.

In a bid to ease their financial strain and convince regulators of their stability, Eagle Football activated several fiscal “levers,” including the sale of club chief John Textor’s stake in English Premier League side Crystal Palace and divesting from Lyon’s women’s team. Still, the DNCG ruled these measures inadequate to meet its strict regulatory criteria.

Textor had expressed optimism following meetings with the DNCG earlier in the year, telling reporters:
“You can see from the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA licensing process. Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably.”

Despite the hopeful tone, the regulatory body found the club’s financial outlook too fragile to justify a Ligue 1 license for the upcoming season.

Lyon, seven-time Ligue 1 champions and a club with a proud European pedigree, now face the grim prospect of competing in Ligue 2 during the 2025/26 campaign—unless their appeal against the ruling is successful.

The latest development marks a dramatic low for one of France’s most historic football institutions, whose fall from grace has sent shockwaves throughout European football.

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