Lyon demoted to Ligue 2

A shock has struck French football as Olympique Lyonnais - the team that dominated Ligue 1 throughout the first decade of the 21st century - was officially relegated to the Second Division due to a financial crisis.

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 that they would appeal, the decision was a major blow to one of France's most storied brands. In an official statement, the club stressed the "incomprehensibility" of the decision, saying they had fully cooperated with DNCG and fulfilled all requests from the supervisory authority.

The main reason for Lyon's tragic situation is the huge debt of 175 million euros (equivalent to more than 203 million USD ) - a figure that DNCG discovered and warned about 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 feasible financial plan, DNCG was not convinced.

The situation became more complicated when the debts related to Eagle Football Group - the corporation owned by American owner John Textor - were announced. The total debt of the football ecosystem owned by Textor (including Lyon, Botafogo, Molenbeek and once owned part of Crystal Palace) reached nearly 575 million USD . The plan to transfer capital from Botafogo to Lyon was rejected by DNCG, leaving Lyon unable to manage the required cash flow.

Lyon is in danger.

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

In addition to the financial crisis, Lyon has also lost its sporting status. They finished sixth in Ligue 1 last season, missing out on a Champions League spot - which used to bring in tens of millions of euros. A quarter-final exit to Manchester United in the Europa League made things worse.

From the heights of seven consecutive Ligue 1 titles (2002–2008), Lyon are now in a full-blown crisis. In just a few years, they have gone from a model of financial stability and youth development to a club struggling for survival both sportingly and financially.

Over the past two years, DNCG has applied a “salary and transfer cap” to Lyon - a clear signal that the club's situation is no longer safe.

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, with the famous academy that produced Benzema, Tolisso, Lacazette... Lyon deserves a chance to make amends. But modern football waits for no one, especially when the numbers on the balance sheet speak for themselves.

Source: https://znews.vn/lyon-bi-giang-xuong-ligue-2-post1563466.html