Olympique Lyonnais are facing administrative relegation to Ligue 2 by the French financial regulator DNCG after continuous financial irregularities. The club that Paulo Fonseca is coaching at the moment has also stated that they will try to overturn the decision.
The DNCG informed that Lyon did not provide financial guarantees that were sufficient in connection with a reported debt of €175 million (£149 million).
This is after a warning in November 2024 that the club would be relegated if it were not able to clear its financial issues by the end of the season.
The club’s president, John Textor, reacted by selling his 43% stake in the Premier League side, Crystal Palace, to Woody Johnson, the New York Jets owner, for £190 million. Besides that, Lyon also sold Rayan Cherki to Manchester City and Maxence Caqueret to Como while high earners Alexandre Lacazette and Anthony Lopes were released. Textor claims that his Eagle group has given the club £70 million as a living injection.
The DNCG, however, did not change its verdict and the decision still stands as the ruling. In case it is enforced, Lyon will lose their Europa League place which they secured with the sixth position in Ligue 1, and Reims will be the ones to go on in the top flight.
Jean-Michel Aulas, former president, described it as a “terrible blow”, and on top of that, he expressed sadness and disbelief. Lyon is scheduled to start pre-season training on July 7, subject to the appeal decision.
