Lyon faces relegation to Ligue 2 over financial mismanagement

In June 2025, Lyon, a prominent football club in France, was officially relegated to Ligue 2 due to ongoing financial problems that persisted despite previous efforts to resolve them. The French football watchdog, known as the DNCG, carried out an audit of Lyon's financial state and upheld its provisional relegation that had been issued the previous November. Lyon's financial difficulties included a reported debt of approximately 175 million euros, which raised serious concerns regarding the club's sustainability in the top tier of French football. Lyon's troubles escalated when the club reported over 500 million euros of debt back in November. Following the provisional relegation, there was hope that selling key players would alleviate the financial woes; however, these efforts proved insufficient. Significant player transfers, such as Rayan Cherki to Manchester City, did inject cash into the club, but not enough to convince the DNCG to overturn the relegation. The club's president, John Textor, had expressed optimism about resolving these issues and participated actively in discussions led by the DNCG. However, the decision to uphold relegation reflects a serious misalignment between Textor’s public confidence and the actual financial state of Lyon. An ongoing transfer ban further complicated matters, preventing Lyon from strategically enhancing its player roster to respond to their challenges. The historical significance of Lyon's relegation cannot be overstated. As seven-time champions of Ligue 1 and former contenders in the Champions League, their drop to Ligue 2 marks a dramatic shift in French football, likely impacting the competitive landscape and fan expectations. The implications of this relegation also extend to John Textor, who is involved in selling his stakes in other football clubs and faces scrutiny regarding his ownership decisions. Rising financial concerns and failures to meet league standards could lead to broader discussions about club regulations and financial management within professional football in France.