In an official statement, the Ligue de Football Professionnel (LFP) has confirmed that the French big club Lyon has been relegated to Ligue 2.
Despite finishing sixth in the French top flight this season, the seven-time French champions are now officially relegated to the second-highest tier of French football.
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Financial crisis led to relegation
The decision comes after a meeting to discuss the club’s financial situation, with participation from both the French Football Federation (FFF), the LFP and the Direction Nationale du Contrôle de Gestion (DNCG).
The news comes just one day after club owner John Textor agreed to sell all his shares in Premier League club Crystal Palace to New York Jets owner Woody Johnson in a deal worth over £190 million.
But the sale was not enough to convince the French authorities that the club’s financial situation had improved, forcing them to relegate Lyon before next season.
Textor expressed earlier optimism
Before the meeting, Textor expressed confidence that the matter would be resolved and that Lyon would remain in Ligue 1:
“From the shareholders’ contributions, it can be seen that we have invested new capital, not only for the DNCG, but also for our UEFA licensing process. Not forgetting the good news about the sale of Crystal Palace. Our liquidity situation has improved considerably.”
However, an official statement from the DNCG confirmed that this would not be the case, and Lyon will have to play in the second division next season.
Financial chaos since 2024
The decision to relegate Lyon was only made provisionally at the end of 2024, after it was revealed that the club had accumulated debts of over 500 million euros (4.26 billion kroner).
As a consequence, Lyon was also given a transfer stoppage, while the DNCG took control of the club’s payroll expenses.
Possibility of appeal
According to Fabrizio Romano, Lyon will be able to appeal this decision if they wish, which means that the current decision on their future may not be final.
It is currently unclear how this will affect Lyon’s participation in the Europa League next season, or if it will affect Crystal Palace’s situation with European play.
The relegation marks a historic low for one of France’s most successful clubs, which as recently as 2020 participated in the Champions League semi-finals.
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