For the first time in 35 years, Olympique Lyonnais — one of French football’s most storied clubs — will play in Ligue 2.
The decision, confirmed on June 24 by France’s financial regulatory body Direction Nationale du Contrôle de Gestion(DNCG), marks an unprecedented fall for a club that won seven consecutive Ligue 1 titles in the 2000s and has long been a symbol of sporting ambition in France.
Despite efforts to restructure and reduce their €425 million debt burden, Lyon’s appeal was rejected — and with that, the club’s immediate future has been dramatically altered.
Inside the Relegation Ruling
The DNCG first issued a warning to Lyon in late 2024, citing a dire financial situation and placing the club under heavy restrictions, including a transfer ban. In the months since, Lyon made significant moves to strengthen their case:
- Debt reduced from €425m to €175m
- Key player sales, including Rayan Cherki to Manchester City and Maxence Caqueret
- The release of high earners like Alexandre Lacazette to lower wage liabilities
- Equity contributions exceeding €60 million to shore up liquidity
Despite these measures, the DNCG ruled that Lyon had not demonstrated sufficient financial health or structural reform — and invoked Article 11, relegating the club to Ligue 2.
According to reports, the timing of the Cherki deal and outstanding documentation may have contributed to the ruling, with Lyon unable to present finalised accounts that satisfied the regulator’s standards by the submission deadline.
Lyon’s Reaction: “Incomprehensible”
In a strongly worded response, Olympique Lyonnais expressed disbelief and frustration at the decision:
“With so much cash liquidity demonstrated, and sporting success which has earned European competition in two consecutive years, we sincerely do not understand how one administrative decision could relegate such a great French club.”
The club confirmed that it will immediately file an appeal, maintaining that all DNCG requests were met, and pointing to ongoing shareholder investment and improved cash position as grounds for reconsideration.
The Crystal Palace Factor
Lyon’s case has been further complicated by multi-club ownership regulations in European football.
Owner John Textor — who also holds a 43% stake in English Premier League side Crystal Palace — was forced to divest his interest to avoid violating UEFA rules prohibiting dual ownership of clubs competing in the same European competition.
Although a £190 million sale to New York Jets owner Woody Johnson has been agreed, the deal remains unapproved by the Premier League — meaning Lyon cannot yet count those funds in their DNCG submission.
Adding to the intrigue: Crystal Palace failed to meet UEFA’s March 1 compliance deadline. The club may now face a tense negotiation with UEFA regarding their eligibility to compete in next season’s Europa League.
Lessons from the Lyon Crisis
Here are 3 strategic takeaways from the Lyon case:
- Financial Engineering Must Meet Regulatory Timelines
Lyon’s debt reduction efforts were substantial, but without timely execution and documentation, the improvements carried little regulatory weight. Clubs must synchronize financial operations with regulator deadlines — or risk severe outcomes. - Multi-Club Ownership Is an Asset… Until It Isn’t
Textor’s entanglement with Crystal Palace and Lyon has revealed how multi-club ownership, while strategically valuable, can clash with regulatory frameworks, especially when clubs qualify for the same European competitions. Exit strategies and compliance plans must be built into every ownership model. - Liquidity ≠ Stability
Having cash on hand isn’t enough. What regulators want is assurance: structured revenue streams, de-risked liabilities, and sustained operational solvency. Perception is reality — and the DNCG viewed Lyon as too volatile, too soon.
Need Strategic Guidance on Club Governance or Multi-Ownership Compliance?
At 365247 Consultancy, we work with clubs, funds, and stakeholders across the global football ecosystem to:
- Structure compliant multi-club ownership models
- Advise on mergers, acquisitions, and stakeholder exits
Contact us to schedule a confidential consultation or learn more about our club advisory services.
