Lyon have been officially relegated by the DNCG, the body responsible for monitoring the finances of French football clubs, following a failure to resolve their financial issues. Despite meeting with the financial watchdog this week, the club could not convince officials that their situation had improved enough to avoid the punishment.
The club’s ownership group, led by John Textor’s Eagle Football, reported debts exceeding £422 million last October. Although Lyon called the decision “incomprehensible” and confirmed they would file an appeal, the ruling casts serious doubt on their future in Ligue 1.
This development also has implications beyond France. Crystal Palace’s Europa League qualification is now under threat due to UEFA’s multi-club ownership rules, which prevent clubs under the same ownership from competing in the same European competition. Textor holds significant stakes in both Lyon and Palace, although he recently reached an agreement to sell his 43% share in the Premier League side.
Lyon expressed confusion over the decision, pointing to recent player sales, including Maxence Caqueret and Rayan Cherki, as well as the release of high earners like Alexandre Lacazette and Anthony Lopes, as evidence of their efforts to stabilize finances. They argue that recent cash injections and the sale of their Palace stake have provided sufficient funds to secure their position in the top flight.
If the decision stands, Lyon will be replaced by Reims, who were previously defeated in the relegation play-off. Lyon, winners of seven consecutive French league titles between 2002 and 2008, have not played outside Ligue 1 since 1989.
This situation mirrors the fate of Bordeaux, another major French club that collapsed financially and was demoted to the amateur ranks.
Lyon remain adamant that their appeal will overturn the decision, but until then, both their future—and Crystal Palace’s European ambitions—remain in serious doubt.
