Lyon Relegated: Ligue 2 Demotion Confirmed | Financial Issues
- Lyon, the seven-time French champions, will be playing in Ligue 2 next season after being demoted due to financial instability.
- Club owner John Textor and other Lyon officials met with the DNGC on tuesday, but they were unable to convince the body that sufficient financial improvements had been...
- Textor's Eagle Football Group, which controls a 77% stake in Lyon, reported debts of £422 million last October.
Seven-time French champion Lyon faces demotion to Ligue 2 following a decision by the DNGC due to significant financial instability; the club role faced an uphill battle. Owner John Textor’s attempts to address the financial crisis weren’t enough to circumvent the penalty. Lyon’s financial woes are made worse by debts exceeding £400 million, despite player sales and the release of high-earning contracts. The situation also raises critical questions about multi-club ownership. Textor’s involvement with Crystal Palace and Botafogo plays a role in this situation. Stay informed with News directory 3. Discover what’s next for Lyon and the future of European football regulations.
Lyon Relegated to Ligue 2 Amid Financial Concerns
Updated June 24, 2025
Lyon, the seven-time French champions, will be playing in Ligue 2 next season after being demoted due to financial instability. The DNGC, which oversees the finances of French professional football clubs, made the decision after reviewing the club’s accounts.
Club owner John Textor and other Lyon officials met with the DNGC on tuesday, but they were unable to convince the body that sufficient financial improvements had been made to avoid the penalty. The club had been provisionally demoted in november.
Textor’s Eagle Football Group, which controls a 77% stake in Lyon, reported debts of £422 million last October. In an attempt to improve their financial standing, Lyon raised about £45 million through player sales, including maxence caqueret to Como in January and Rayan Cherki to manchester City this month. The club also released high-earning players such as Alexandre Lacazette and Anthony Lopes.
Lyon has the right to appeal the decision. If the demotion stands, Reims, who lost to metz in the relegation play-off, would take lyon’s place in the top flight.Lyon won their seven league titles consecutively between 2002 and 2008.They last played in the second tier in 1989 and reached the Champions League semi-finals in 2020.
despite the provisional punishment in November, Textor had expressed confidence, stating there was “no chance” of relegation. He reiterated this before Tuesday’s meeting, saying, “We have made a variety of investments in recent weeks. Everything is good financially.”
Textor also holds a meaningful stake in Brazilian club Botafogo and co-owns Premier League club Crystal Palace. he recently agreed to sell his 46% stake in Crystal Palace to New York Jets owner Woody Johnson. This move comes as Crystal Palace qualified for the Europa League by winning the FA Cup, perhaps creating a conflict with UEFA rules.
UEFA regulations prevent multiple teams under the same multi-club ownership structure from competing in the same European competition. Lyon also qualified for the Europa League by finishing sixth in Ligue 1. Crystal Palace hopes Textor’s decision to sell his stake will prevent any conflict.
What’s next
Lyon faces an uphill battle to regain its financial footing and return to Ligue 1. The club’s appeal will be crucial in determining its immediate future.The situation also highlights growing concerns about multi-club ownership and its potential impact on fair competition in european football.