Club that won 7 consecutive Ligue 1 championships was demoted to Ligue 2 due to financial crisis

VHO - Lyon, a seven-time Ligue 1 champion, has been relegated to Ligue 2 for failing to meet financial standards set by the National Management Control Agency (DNCG), the financial oversight body for French professional clubs. Despite efforts to improve the situation, Lyon has failed to convince the DNCG and now faces an uncertain future.

Lyon won seven consecutive Ligue 1 titles from 2002 to 2008.

Debt burden and "death sentence" from DNCG

The decision to demote was made after a meeting between DNCG and Lyon owner American businessman John Textor and CEO Mickael Gerlinger.

In November 2023, the DNCG imposed a provisional fine on Lyon due to debts of up to 175 million euros, pointing out that the club did not have a clear financial plan to fix it. Lyon was also banned from making transfers in the winter window of 2024.

In a statement released on the evening of June 25, Lyon called the decision "incomprehensible" and announced that it would immediately appeal:

"Given the club's proven financial resources and its performance in Europe for two consecutive seasons, we cannot understand why an administrative decision could relegate such a big club."

Lyon hopes John Textor's sale of his 43% stake in Crystal Palace for $254 million to New York Jets owner Woody Johnson will help improve cash flow.

Textor confirmed that Lyon's liquidity situation has improved thanks to this deal and equity investments from shareholders.

However, DNCG is still not convinced. Previously, Eagle Football Group, owned by Textor, announced a debt of more than 574 million USD in October last year.

An attempt to transfer money from Brazilian club Botafogo, also owned by Textor, to Lyon to cover losses was rejected by DNCG.

Concerns spread to Crystal Palace and Europa League spot

The incident also affected Crystal Palace, the English team that just qualified for the Europa League after winning the FA Cup.

According to UEFA regulations, two clubs owned by the same individual or organization cannot participate in the same European tournament.

With Lyon finishing sixth in Ligue 1 and also qualifying for the Europa League, Crystal Palace could be stripped of their place if UEFA determines they have breached multi-club ownership rules.

However, Lyon's relegation means that the French team's 2024-25 season results will be voided, which could open up the opportunity for Crystal Palace to retain their spot. The English side is still waiting for UEFA to make an official decision.

However, Palace are also concerned that if Lyon appeal to higher levels, the review process could be prolonged, thereby affecting preparations for the first European season in the club's history.

Lyon owner John Textor has failed to convince French authorities to avoid relegation to Ligue 2.

From the peak to the brink

Lyon were once a symbol of French football dominance, winning seven consecutive Ligue 1 titles between 2002 and 2008. The team reached the Champions League semi-finals in 2020 and has only missed out on the French top flight once since 1989.

In the 2024-2025 season, Lyon was eliminated in the quarter-finals of the Europa League after losing to Manchester United and only finished sixth in Ligue 1. This result prevented them from qualifying for the Champions League and missed out on tens of millions of euros in revenue from UEFA.

Even after selling Maxence Caqueret to Como and Rayan Cherki to Manchester City, and parting ways with two high-paid players, Alexandre Lacazette and Anthony Lopes, to reduce costs, Lyon still could not completely solve the financial problem.

Lyon: Fading icon or victim of multi-club ownership model?

Lyon’s story highlights the risks inherent in the multi-club ownership model that many international football groups are pursuing. Controlling multiple clubs such as Botafogo, Lyon and Crystal Palace not only creates financial pressure but also conflicts with UEFA’s strict regulations on the independence of clubs participating in European competitions.

Lyon's future will be decided in the coming weeks as the appeal process proceeds. However, if the decision is not overturned, it will be one of the biggest shocks to hit French football in a decade. A once-glorious icon could be plunged into the depths of an off-field crisis that no one ever thought would happen to Lyon.

Source: https://baovanhoa.vn/the-thao/clb-tung-7-lan-lien-tiep-vo-dich-ligue-1-bi-giang-xuong-ligue-2-vi-khung-hoang-tai-chinh-145763.html