Lyon relegated to French soccer’s second tier amid ongoing financial problems

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"Lyon Relegated to Ligue 2 Due to Financial Irregularities"

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Original Article Source: https://edition.cnn.com/2025/06/24/sport/lyon-relegated-amid-financial-problems-spt
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Lyon, a seven-time champion in French soccer, has officially been relegated to Ligue 2 due to ongoing financial irregularities. This decision was made by the DNCG, the French league's financial watchdog, following an audit that revealed Lyon's substantial debt, estimated at approximately 175 million euros ($203 million). This move is part of a broader trend, as the club had already faced provisional relegation in November when its total debt was reported to exceed 500 million euros ($581 million). In addition to the relegation, Lyon has been under strict scrutiny regarding its transfer activities, which have been limited under a framework designed to control wage costs and transfer indemnities. The club’s owner, American businessman John Textor, was present during the hearing on Tuesday, expressing optimism about the club's financial recovery efforts despite the grim outcome of the hearing. Lyon is expected to appeal the decision, hoping for a reversal that would allow them to remain in the top tier of French soccer.

The financial challenges faced by Lyon have been compounded by the recent announcement that Premier League club Crystal Palace has entered into a legally binding agreement to purchase Textor's shares, valued between $220 million and $260 million. This development comes on the heels of a critical cash injection from the sale of promising playmaker Rayan Cherki for 36 million euros. However, the club's financial situation remains precarious, especially after failing to qualify for next season's Champions League, which would have provided a significant financial boost. Lyon's storied history includes winning seven league titles between 2002 and 2008 and reaching the semifinals of the Champions League in 2020. The current relegation represents a significant setback for a club that has been a dominant force in French soccer, and the outcome of their appeal will be closely watched by fans and stakeholders alike.

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Source URL: https://edition.cnn.com/2025/06/24/sport/lyon-relegated-amid-financial-problems-spt

Seven-time French champion Lyon was relegated to the second tier on Tuesday because of ongoing financial irregularities.

The decision followed an audit of the club’s finances by the French league’s soccer watchdog, known as DNCG. French sports daily L’Equipe estimated Lyon’s current debt at 175 million euros ($203 million). Lyon was expected to appeal the decision.

The decision comes after the DNCG had alreadyprovisionally relegatedLyon to Ligue 2 in November, with the club reporting at the time that it had more than 500 million euros ($581 million) of debt. A transfer ban was also imposed in the January transfer window.

Lyon is owned by American businessman John Textor, who has stakes in Brazil’s Botafogo and Premier League team Crystal Palace.

Textor was present for the hearing in Paris on Tuesday. He had been optimistic it would be successful for Lyon, which has been trying to balance the books.

On Monday, Premier League side Crystal Palace announced that New York Jets ownerWoody Johnsonsigned “a legally binding contract” to buy Textor’s shares. Textor has a 43% stake in the London club. Reports have placed the price between $220 million and $260 million.

Two weeks ago, Lyon received a much-needed cash injection by selling coveted playmakerRayan Cherkifor 36 million euros.

But the club has been under growing pressure.

Two years ago, the DNCGdecided to monitorthe club’s transfer activities, saying its moves on the market would be limited under “a framework for wage costs and transfer indemnities.”

Lyon won its seven league titles from 2002-08 and reached the Champions League semifinals in 2020.

Lyon narrowly lost to Manchester United in the Europa League quarterfinals and missed out on a cash windfall when it failed to qualify for next season’s Champions League after finishing sixth in Ligue 1.

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Source: CNN