Champions League Semifinalists Crash Down to Lower Division Following Financial Investigation

Olympique Lyon, among France's most prominent and accomplished football clubs, has been demoted to Ligue 2 for the 2025–26 campaign by the Direction Nationale du Controle de Gestion.

The DNCG, which monitors the financial affairs of French football organizations, made the announcement through the Ligue de Football Professional (LFP), France's football governing authority. This decision follows a temporary administrative demotion issued in November due to financial difficulties. The club faced restrictions on player acquisitions during the January transfer period and was warned of potential relegation unless financial problems were resolved.

Having failed to rectify their financial position according to DNCG requirements, the club now faces demotion to France's second tier. While AS Monaco, FC Nantes and Paris FC were also under examination, no penalties were imposed on these three organizations.

Lyon retains the right to challenge this ruling.

The November decision affected John Textor's ownership. The American businessman's Eagle Football Group holds a 77% ownership in Lyon. This relegation ruling follows EFG's sale of their Crystal Palace shares to New York Jets co-owner Woody Johnson. Textor maintains majority control of Brazilian club Botafogo.

Lyon captured seven Ligue 1 championships from 2001 to 2008. The club also advanced to the UEFA Champions League semifinals on two occasions, with their latest appearance in 2020. Lyon recently transferred star player Rayan Cherki to Manchester City.