Lyon relegated to Ligue 2 due to financial breaches; American owner John Textor reportedly expected to appeal
Lyon was relegated to Ligue 2 following a decision by the National Management Control Directorate (DNCG), a financial guardian from French football, seven months after their temporarily relegated for poor financial management.
The club announced that they will call on the decision, buying them more time to meet the financial requirements of the DNCG.
“Olympique Lyonnais recognizes the incomprehensible decision rendered this evening by the DNCG and confirms that it will immediately appeal. In recent months, we have worked in close collaboration with the DNCG, satisfying all its requests with investments in cash in cash exceeding the requested amounts”, the declaration on X Read. “Thanks to the contributions to the actions of our shareholders and the sale of Crystal Palace, our cash position has improved considerably, and we have more than sufficient resources for the 2025/26 season. With so much liquidity in demonstrated cash, and a sporting success which has gained European competition during two consecutive years, we sincerely understand our administrative detention at Ligue 1. “
The decision occurred Tuesday following an audience before the DNCG, with the owner and president of the club John Textor for the procedure.
In November, Lyon was temporarily relegated to the second division for their several million dollars debt, which, according to some estimates, reached $ 200 million up to $ 530 million. The DNCG’s decision last fall last fall on Textor to improve Lyon’s financial situation before the organization was to make a final decision, with several money movements in recent weeks, somewhat improving the situation.
Several players have since left Lyon while the club was aimed at pocket serious transfer fees, in particular with the move from Rayan Cherki to Manchester City earlier this month in an apparently value agreement of $ 41.76 million at the club short of money. The move of Textor to sell Crystal Palace in England, another club under the umbrella of Eagle Football Holdings, could also play a role – he would have agreed to sell his participation of 44.9% in Palace in Woody Johnson, the owner of the NFL New York Jets, for an amount of around 258 million dollars. It is unlikely that he still received the funds, which may have played a role in the DNCG’s decision.
“You can see this thanks to the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA license process. Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably.” Textor told media members before the decision arrived on Tuesday, according to RMC. “Everyone generally knows how much we sold Crystal Palace. This money is invested in Eagle. Obviously, we like to use it to reimburse our debts. We also like to make part of the company. The UEFA asked us to invest a sum of money in the company to ensure our sustainability and reassure it. We accepted its request and provided this amount. And the presentation. DNCG. “
Despite financial ruin, Lyon finished sixth in Ligue 1 during the 2024-25 campaign and should play in the UEFA Europa League season phase.
