Lyon were relegated to Ligue 2.

The announcement was made by the French Professional Football League (LFP) on June 24, following the final decision from the DNCG Financial Control Committee.

Although Lyon immediately confirmed they would appeal, this was still a major blow to one of France's most traditional brands. In an official statement, the club emphasized the "puzzling" nature of the decision, stating that they had fully cooperated with the DNCG and fulfilled all requirements from the supervisory body.

The main reason Lyon is in this dire situation is its massive debt of 175 million euros (equivalent to over 203 million USD ) – a figure discovered and warned about by the DNCG in November 2023. At that time, Lyon was temporarily relegated and subject to a transfer ban during the winter transfer window. Although the club claimed to have a viable financial plan, the DNCG was not convinced.

The situation became even more complicated when debts related to Eagle Football Group – the conglomerate owned by American businessman John Textor – were revealed. The total debt of Textor's football ecosystem (including Lyon, Botafogo, Molenbeek, and formerly a stake in Crystal Palace) amounted to nearly $575 million . The plan to transfer capital from Botafogo to Lyon was rejected by DNCG, leaving Lyon unable to secure the required cash flow.

Lyon is in danger.

In an attempt to salvage the situation, John Textor sold 43% of his shares in Crystal Palace to billionaire Woody Johnson for $254 million . The deal was expected to help Lyon regain liquidity. Textor confidently declared: “Our cash situation has improved significantly. We have sufficient resources for the 2025/26 season.” However, that was not enough to convince DNCG.

Besides the financial crisis, Lyon has also lost its sporting prestige. They finished only 6th in Ligue 1 last season, missing out on a Champions League spot – a competition that used to generate tens of millions of euros in revenue. Their elimination in the Europa League quarter-finals against Manchester United only made things worse.

From its peak with 7 consecutive Ligue 1 titles (2002–2008), Lyon is now in a complete crisis. In just a few years, they have slid from a model of financial stability and youth development to a club struggling for survival in both sporting and accounting aspects.

Over the past two years, DNCG has imposed "salary and transfer limits" on Lyon – a clear signal that the team's financial situation is no longer secure.

If the appeal fails, Lyon will be relegated to Ligue 2 for the first time in the 21st century – a painful setback for one of the biggest names in French football. With its history and renowned academy that has produced players like Benzema, Tolisso, and Lacazette, Lyon deserves a chance to redeem itself. But modern football waits for no one, especially when the financial figures speak for themselves.