Seven-time Ligue 1 champions Olympique Lyonnais have been officially relegated to Ligue 2 by French football’s financial watchdog, the DNCG, due to unresolved financial irregularities. Despite finishing sixth in the 2024–25 Ligue 1 season and qualifying for the UEFA Europa League, Lyon’s demotion stems from a failure to meet financial compliance standards, including a reported €500 million debt.
💸 Financial Crisis and DNCG Verdict
The DNCG (Direction Nationale du Contrôle de Gestion) confirmed the relegation after Lyon failed to convince regulators of their financial stability, despite:
- Selling key players like Rayan Cherki to Manchester City and Maxence Caqueret to Como
- Offloading high-wage earners including Alexandre Lacazette and Anthony Lopes
- Club owner John Textor selling his 43% stake in Crystal Palace for $254 million to improve liquidity
Lyon called the decision “incomprehensible” and has filed an appeal, citing improved cash flow and equity contributions.
🤝 PSG’s Reported Intervention
In a surprising twist, Paris Saint-Germain (PSG) has reportedly offered financial and legal advisory support to Lyon during their appeal process. While PSG has not made an official statement, French media suggests the move is part of a broader effort to preserve Ligue 1’s competitive integrity and avoid reputational damage to French football on the European stage.
🏟️ What’s at Stake
If the appeal fails:
- Stade de Reims, who lost in the relegation playoff, will be reinstated to Ligue 1
- Lyon will miss out on Europa League participation, potentially affecting France’s UEFA coefficient
- The club’s long-term viability could be at risk, despite recent asset sales and restructuring
📉 Lyon’s Financial Snapshot
| Financial Indicator | Status (as of June 2025) |
|---|---|
| Total Debt | €500+ million |
| Short-Term Debt | €161.7 million |
| Transfer Revenue (2025) | €42.5 million (Cherki sale) |
| Stake Sale | $254 million (Crystal Palace) |
Stay tuned for updates on Lyon’s appeal and PSG’s role in this unfolding saga.
