Lyon Relegated to Second Division Amid Financial Crisis

Lyon, France — The Olympique Lyonnais football club has been relegated to the second division of French football due to severe financial issues, a decision made on June 24, 2025, by the National Directorate of Management Control (DNCG). The DNCG oversees the financial health of professional football clubs in France.

The DNCG had warned the club in November 2024 that they would face administrative relegation if financial conditions did not improve by June 2025. Despite assurances from club owner John Textor, the DNCG confirmed that Lyon was unable to meet the required financial guarantees for the upcoming season.

Textor, who also owns Botafogo, faced criticism for the club’s financial management. He previously expressed confidence, stating, “We made several investments in recent weeks.” However, this optimism could not prevent the DNCG’s ruling.

In a press conference on November 16, 2024, Textor outlined plans to stabilize the club financially, including increasing revenue through player sales and a potential public offering. Nevertheless, these measures were inadequate to resolve the financial crisis.

Lyon concluded the recent Ligue 1 season in sixth place, which secured a spot in the Europa League. However, significant debt accumulation, estimated at 175 million euros (approximately R$ 1.1 billion), overshadowed on-field success.

In recent transactions, Lyon sold player Rayan Cherki to Manchester City for 36.5 million euros but faced challenges to demonstrate sufficient liquidity and financial support to the DNCG.

Textor stated before the ruling: “Everyone knows how much we sold Crystal Palace for. That money is invested in Eagle. We are keen to use some of it to settle our debts.” Despite the club’s monumental challenges, Lyon plans to appeal the relegation decision.