Ligue 1 giants Lyon dropped to Ligue 2 over massive debt

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French football giants Olympique Lyonnais have been relegated to Ligue 2 after France’s financial watchdog, the DNCG, ruled against the club due to massive debt exceeding €500 million.

Lyon, alongside other Ligue 1 clubs, appeared before the National Management Control Directorate to review their financial health. Despite attempts by the club’s owners, Eagle Football Group, to stabilize the finances—including selling John Textor’s stake in Crystal Palace and Lyon’s women’s team—the measures fell short of DNCG requirements.

Club owner John Textor expressed optimism after the meeting. “You can see from the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA licensing process,” he said. “Our liquidity situation has improved considerably.”

The club is expected to appeal the ruling. If unsuccessful, Lyon will play in Ligue 2 during the 2025-26 season, marking a historic setback for one of France’s most storied football clubs.

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