Olympic Lyon relegated into Ligue 2

In a dramatic turn to French football, Olympique Lyon one of the nation’s most historic clubs has been sent to the ‘poubelle’ and relegated to Ligue 2 not because of their performance (or lack of) on the pitch, but due to financial irregularities. Despite finishing sixth in Ligue 1 in the 2024–2025 season and even securing a spot in the Europa League, the DNCG (Direction Nationale du Contrôle de Gestion), French football’s financial supervisor, shockingly confirmed Lyon’s administrative demotion on June 24.

The relegation stems from Lyon’s unsustainable financial position, including debts estimated to exceed €170 million. The club’s owners, led by American John Textor as the chairman, failed to convince DNCG that a recovery plan was viable. The unprecedented situation has shocked both fans and experts. Some have called the decision “a disgrace” while others blamed mismanagement on the executive level.

Lyon has appealed the decision, but the relegation is still in place unless it’s overturned. The appeals process should be completed within a few weeks. However, the uncertainty over the immediate future of the club is still a concern. Malick Fofana, Rayan Cherki and others are said to be considering transfers because they fear a decline in their competitive level and visibility.

Stade de Reims could keep their Ligue 1 status if the relegation goes through. Lyon, the seven-time French champion faces the grim reality that it will be playing in second division football for the very first time since the 1970s (unlike Juventus, who already did this). This marks a seismic change in the world football. The future of this club now lies in the hands the DNCG. Once you hit bottom, there is no way back up.