In a shocking turn of events, French football giants Olympique Lyonnais have been relegated to Ligue 2 by the Direction Nationale du Contrôle de Gestion (DNCG), the financial watchdog of French football. The decision comes after the club failed to address a significant financial shortfall, despite efforts from owner John Textor to stabilize the situation.
Textor, who attended a DNCG hearing earlier this week, expressed confidence in Lyon’s financial recovery. “Our shareholders have made substantial contributions, injecting new capital not only to meet DNCG requirements but also to secure our UEFA licensing process,” he stated. “Additionally, the recent sale of Crystal Palace has significantly improved our liquidity.”
However, despite his optimism, the DNCG ruled that Lyon’s financial position still fell short of the standards required to maintain their Ligue 1 status. The club now has a seven-day window to appeal the decision, which could delay the final ruling and potentially buy them more time to prove their financial stability. According to RMC Sport, this appeal process might grant Lyon “a few more weeks” to rectify their situation.
If the appeal is unsuccessful, Lyon will face the harsh reality of competing in Ligue 2 next season. This development could pave the way for Stade Reims, who were relegated after losing a play-off to FC Metz, to reclaim their place in Ligue 1. Under Article 520 of the Ligue de Football Professionnel (LFP) regulations, if a club is barred from Ligue 1 due to financial or disciplinary issues, the losing team from the relegation play-off is reinstated.
John Textor’s recent headlines extend beyond Lyon’s financial woes. His involvement with Crystal Palace has also been under scrutiny due to UEFA’s multi-club ownership rules. Textor recently agreed to sell his 43% stake in the Premier League club to US businessman Woody Johnson, a move aimed at resolving conflicts with UEFA’s regulations. “While the sale is pending approval from the Premier League and Women’s Super League, we anticipate no issues and look forward to welcoming Woody as a partner and director of the club,” read a statement from Crystal Palace.
Both Lyon and Crystal Palace had qualified for the Europa League—Lyon through their Ligue 1 finish and Palace by winning the FA Cup—but their shared ownership raised concerns under UEFA’s rules. Clubs must resolve multi-club ownership conflicts by March 1, 2025, and maintain compliance throughout the season. Textor’s sale of his Palace stake was an attempt to avoid sanctions, though Lyon’s financial troubles might render the move unnecessary.
If Lyon are deemed ineligible for European competition, Crystal Palace would avoid any threat of demotion to the Europa Conference League, where Nottingham Forest could step in as a replacement.
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