Seven-time French champions Lyon relegated to Ligue 2 over financial problems

Lyon, a club with a rich history and seven-time champions of France, has been relegated to Ligue 2 due to unresolved financial difficulties. The decision came after the French football regulatory body, DNCG, upheld a provisional relegation that was initially imposed in November when the club was reported to have accumulated significant debts. Despite efforts to stabilize their finances, including the sale of several first-team players, the DNCG concluded that Lyon had not sufficiently addressed its financial issues. This ruling was officially announced by the French Football League (LFP) on Tuesday evening, confirming that other clubs, including Monaco, Nantes, and Paris FC, would not face similar sanctions. Lyon's relegation marks a dramatic downturn for a club that dominated French football in the early 2000s, winning seven consecutive league titles and reaching the Champions League semi-finals as recently as 2020.

The implications of Lyon's relegation extend beyond the club itself, as it sends shockwaves through the landscape of French football. Lyon's president, John Textor, had expressed confidence in resolving the financial challenges, previously stating that relegation was highly unlikely. However, the situation has been complicated by Textor's ongoing negotiations to sell his shares in Crystal Palace, a deal that is pending approval from the Premier League. The sale to Woody Johnson, owner of the NFL's New York Jets, is still awaiting ratification, which adds another layer of uncertainty. To mitigate their financial standing, Lyon has made significant player sales, including those of Saïd Benrahma, Anthony Lopes, Maxence Caqueret, and Rayan Cherki to Manchester City. As Lyon contemplates an appeal against the relegation decision, the club's future remains uncertain, with fans and stakeholders concerned about the potential long-term impact on the team's legacy and competitiveness in French football.