Lyon Falls to Ligue 2: Club's Financial Troubles Deepen

Lyon faces relegation to Ligue 2 due to financial problems, despite qualifying for the Europa League. The club's future hangs in the balance.

Lyon has been administratively relegated to Ligue 2 due to financial issues, as confirmed by the National Directorate of Management Control (DNCG). The decision, which can still be appealed, deals a significant blow to Paulo Fonseca's team. This development marks a tumultuous period for the French club.

Lyon's president, John Textor, had expressed confidence in the club's financial figures, assuring that they would generate “several hundred million euros in the coming months.” Notably, Textor recently sold his 43% stake in Crystal Palace. In an effort to address financial issues, Lyon had already taken steps to reduce their salary bill and sold key players Rayan Cherki to Manchester City and Maxence Caqueret to Como.

According to reports, Lyon was sold for £190 million to Woody Johnson, owner of the New York Jets' NFL team. Prior to the sale, Lyon took measures to cut costs, including releasing key players Alexandre Lacazette and goalkeeper Anthony Lopes. Lyon's former owner, John Textor's Eagle group, reportedly invested £70 million into the club before the sale.

🚨 OFFICIAL: Olympique Lyon have been relegated to Ligue 2.

The club has the possibility to appeal the decision. pic.twitter.com/T4UKbqYQBV

— Fabrizio Romano (@FabrizioRomano) June 24, 2025

“Thanks to the equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved considerably, and we have more than sufficient resources for the 2025-2026 season,” said the club statement.

Lyon's Relegation Sparks Outrage

Lyon's relegation to Ligue 2 has sparked widespread disappointment, with the club having recently secured a spot in next season's Europa League after finishing sixth in Ligue 1. If the relegation stands, Reims will take Lyon's place in the top flight. Jean-Michel Aulas, the club's legendary president, expressed his sorrow on social media, saying, “It's a terrible blow to all those who love Lyon.” The club enjoyed a golden era under Aulas, winning seven consecutive French titles from 2002 to 2008.

“For 36 years I made sure that such a situation could not happen.

“I gave everything to build a solid, respected, ambitious club that was financially healthy.

“Today, it's sadness that dominates. And an immense failure to understand,” the 76-year-old added.

Lyon are one of the most successful clubs in Ligue 1 history, though only five clubs have claimed more titles. Paris Saint-Germain holds the record with 11 league championships is incorrect they hold 13. Lyon recently secured a spot in next season's Europa League by finishing sixth in the top-flight. Despite the off-field turmoil, the club is set to start its pre-season preparations on July 7th.

Lyon's relegation to Ligue 2 has sent shockwaves, sparking widespread disappointment among fans and stakeholders. The club had just secured a spot in next season's Europa League with a sixth-place finish in Ligue 1. If the relegation is upheld, Reims will take Lyon's place in the top flight. Legendary president Jean-Michel Aulas expressed his devastation on social media, stating, “It's a terrible blow to all those who love Lyon.” The club's golden era under Aulas saw them dominate French football, winning seven consecutive titles from 2002 to 2008.