Lyon relegated to Ligue 2 over finances but French giants will appeal against 'incomprehensible' decision
Lyon relegated to Ligue 2 after an audit by French football financial watchdog; seven-time French champions will appeal against decision; Lyon are owned by John Textor, who has sold his stake in Crystal Palace to New York Jets owner Woody Johnson; Lyon finished sixth in Ligue 1 last season
Wednesday 25 June 2025 10:32, UK
French giants Lyon have confirmed they will appeal against the "incomprehensible" decision to relegate them to Ligue 2 after failing to convince authorities they have resolved their financial difficulties.
The seven-time French champions were hit with a provisional relegation back in November after racking up massive debts, and although they have since sold a number of first-team players, French football watchdog the National Directorate of Management Control (DNCG) upheld the relegation following meetings on Tuesday.
Lyon are owned by John Textor, and the decision to relegate them comes a day after the American businessman sold his stake in Crystal Palace to New York Jets owner Woody Johnson.
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It is currently unknown what impact Lyon's relegation and Johnson's purchase of Textor's shares in Palace will have on both clubs' Europa League places. Crystal Palace's participation is currently in danger because UEFA rules prevent clubs in multi-club ownership models from playing in the same European competitions.
A verdict on whether Lyon meet financial rules from the UEFA Club Financial Control Body (CFCB) is still pending and the Premier League and WSL still need to approve Johnson's sale to Textor.
UEFA did not comment when contacted by Sky Sports News.
Lyon, who finished sixth in Ligue 1 last season, said in a statement: "Olympique Lyonnais acknowledges the incomprehensible decision handed down by the DNCG this evening and confirms that it will immediately appeal.
"Over the past few months, we have worked closely with the DNCG, meeting all of its demands with equity investments in excess of the amounts requested. Thanks to equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025/26 season.
"With proven funds and sporting success that has earned us a place in European competition two years in a row, we sincerely do not understand how an administrative decision could have relegated such a major French club. We will appeal to demonstrate our ability to provide the necessary financial resources to ensure OL's continued presence in Ligue 1."
Textor told L'Equipe last week he was confident Lyon's financial position had been resolved, having said back in November there was "no chance" the club would be relegated.
After receiving the provisional relegation last year, Lyon sold the likes of Said Benrahma, Anthony Lopes and Maxence Caqueret in January, and this summer they have already sold Rayan Cherki to Manchester City in a £34m deal.
Lyon winger Malick Fofana is a Chelsea target this summer after the Blues made an enquiry for the Belgium international.
Meanwhile, Sky Sports News has reported Lyon have been interested in signing Nottingham Forest pair Matt Turner and Danilo.
'A massive earthquake for French football - and Textor is to blame'
French football expert Julien Laurens speaking to Sky Sports News:
"Back in November, they'd been provisionally relegated by the DNCG because at the time they were in debt of around £200m. The DNCG said, 'If it stays like this, you're going to go down, regardless of where you finish in the league. So you better sort out your account between now in November and June when you come back to see us.'
"And John Textor was like, 'Yes, don't worry, no problem. We will sell players in January. We will do the same before the end of June. We've got all these plans in place.'
"So they went in quite optimistic today in Paris to meet the DNCG, but this news was a massive earthquake in French football because we all thought and understood that Lyon would be okay, and actually the plans they put forward for sorting out their financial issues were not convincing enough for the DNCG.
"They will appeal now, but the thing is, they won't have much time between now and the appeal to put a plan in place that was different from the one they presented today.
"They sold Rayan Cherki to Manchester City - that was part of the plan. (But) you can't take money off Botafogo to just put it on the Lyon account. They've been trying to put a plan like that together, but that didn't work.
"Now, I'm just not sure what else they can do apart from maybe selling Malick Fofana to an English club, maybe another player or two. But again, they will be really running against the clock, and other clubs will also know that they need money very quickly, so they won't be in a powerful position in terms of transfer markets and transfer fees.
"I'm actually quite worried now because we've seen in the past clubs who were relegated, then appealed, then find a way with new investors, money coming in from one way or another, to stay up. But for Lyon, the clock is ticking massively now.
"It's terrible. Since John Textor took over and bought the club from Jean-Michel Aulas, who is this historic figure in Lyon who took the club mid-table in the second division in the mid-eighties to seven league titles in a row and the semi-finals of the Champions League, to this now, to being relegated to the second tier in France.
"John Textor's made this club a mess. There's no other way of putting it. He's been one of the worst owners, spending money everywhere, sacking managers, hiring the wrong managers.
"I just don't know how you get out of this. If you're Lyon, this is a terrible position to be in."
'Lyon's relegation could be good news for Palace'
Sky Sports News chief correspondent Kaveh Solhekol:
"Lyon's relegation could be good news for Crystal Palace - Lyon have been relegated for breaking Ligue 1's financial rules and unless they appeal successfully against that relegation, it could clear the way for Palace to successfully play in the Europa League.
"Palace and Lyon have qualified for the Europa League, but the problem is John Textor owned shares in both clubs. He has now sold his stake in Palace to Woody Johnson, so you would think that Palace would be fine to play in next season's Europa League, but we have to wait until Friday when UEFA's financial control body is meeting.
"But if Lyon's relegation is confirmed, they will not have finished sixth in Ligue 1 last season, they will have been relegated and will be ineligible to play in the Europa League next season and that will mean Palace will definitely be able to play in the Europa League."
