Lyon Facing Relegation Despite Sixth-Place Finish in Ligue 1 – What Really Happened?

Ligue 1 Giants Lyon, Who Secured European Qualification Last Season, Now Face Life in the French Second Division.

In a stunning twist that has shocked everyone, Olympique Lyonnais have been administratively relegated to Ligue 2 ahead of the 2025-26 season. Lyon finished sixth in the Ligue 1 2024-25 season. Due to that, they had also qualified for the upcoming season’s UEFA Europa League.

However, reportedly, they will now be playing second-tier football. It doesn’t seem all is lost though as Lyon have said that they will appeal the matter immediately. The relegation was confirmed by the Direction Nationale du Contrôle de Gestion (DNCG) – the watchdog responsible for monitoring the financial health of French football clubs.

Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.

In recent months, we have worked closely with the DNCG, satisfying all of its requests with cash equity investments exceeding the…
— Olympique Lyonnais 🇬🇧🇺🇸 (@OL_English) June 24, 2025

They came to the decision following a detailed review of Lyon’s accounts. Lyon were previously handed a provisional relegation in November 2024. They also received a transfer ban in January. Even so, the club failed to meet the financial guarantees required to maintain their top-flight status.

Failed Recovery Measures and High-Stakes Ownership Changes

John Textor’s Eagle Football Group, which holds a 77% stake in Lyon, made multiple efforts to stabilise the club’s finances. These included the sale of OL’s women’s team to U.S. investor Michelle Kang. Textor also had a 43% stake in Crystal Palace.

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In a high-profile agreement he offloaded Eagle Football’s stakes in the Premier League club to New York Jets owner Woody Johnson. However, these actions weren’t enough to sway the DNCG. Textor had previously dismissed concerns, stating in November that there was “no chance” of relegation.

Now it seems that even the £34 million sale of star forward Rayan Cherki to Manchester City and interest in selling other assets failed to convince French authorities. According to L’Equipe, the DNCG made its decision after Lyon could not provide the financial guarantees it demanded. Thus, sealing the club’s descent to Ligue 2.

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Next Steps and Possible Appeal for Lyon

Lyon are now preparing to formally appeal the ruling. A successful appeal is not without precedent. clubs like Nancy have overturned similar decisions in the past. Still, with the official season concluding on June 30 and the DNCG’s stance firm, Lyon’s chances appear slim.

Lyon’s statement read “Olympique Lyonnais acknowledges the incomprehensible decision handed down by the DNCG this evening and confirms that it will immediately.” The relegation marks a dramatic low point for a club that once dominated Ligue 1, winning seven consecutive titles from 2001 to 2008.

Crystal Palace

Europa League

John Textor

Ligue 1

Ligue 2

Lyon

Premier League

Moumita Dutta

soccer

Football writer at The Playoffs. I’ve been obsessed with the beautiful game since I was a kid.. Eventually, I realized I could combine my passion for writing with my love for football, and I’ve never looked back. My favorite part of the job is everything—when you’re doing what you love, even a late-night deadline feels like extra time in a thrilling cup final. Lastly, Lionel Messi is the GOAT.