Lyon relegated to Ligue 2 over financial issues

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French football giants Olympique Lyonnais have been relegated to Ligue 2 by France’s financial watchdog, the National Directorate of Management Control (DNCG), due to concerns over the club’s finances.

The decision was announced by the French Professional Football League (LFP) on Tuesday, following a hearing where Lyon failed to convince the DNCG to remove financial restrictions placed on the club last year.

Lyon, who finished sixth in Ligue 1 and qualified for next season’s UEFA Europa League, have not played in the second division since 1989. The club says it will appeal the decision.

Before the ruling, Lyon president John Textor expressed confidence that the club had done enough to avoid relegation. “We have made several investments recently. Everything is good financially,” he said.

Textor, who also sold his 43% ownership in English club Crystal Palace earlier this week, noted that Lyon had reduced its wage bill and sold key players, including Rayan Cherki to Manchester City and Maxence Caqueret to Italian side Como.

If the DNCG's decision is upheld, Reims would likely take Lyon’s place in Ligue 1 for the 2025/26 season.

Lyon is one of France’s most successful clubs, having won seven consecutive league titles between 2002 and 2008. Only five French clubs have more Ligue 1 trophies, with Paris Saint-Germain leading the list with 13 titles.

The club’s drop to Ligue 2 marks a shocking twist in what had appeared to be a promising end to their season on the pitch.

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