LYON TO APPEAL RELEGATION AFTER FRENCH FINANCIAL WATCHDOG DEMOTION DECISION

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Agency Report

Seven-time Ligue 1 champions Olympique Lyonnais have announced plans to appeal their shock relegation to the second tier of French football following a ruling by the sport’s financial watchdog, the DNCG (Direction Nationale du Contrôle de Gestion).

In a statement issued Tuesday, the club expressed disappointment after failing to overturn financial restrictions imposed in November, which ultimately led to the demotion.

“Over the past few months, we have worked closely with the DNCG, meeting all of its demands with equity investments exceeding the amounts requested,” the club said.

Despite the ruling, club president John Textor remains optimistic. “Our liquidity situation has improved considerably,” said the American businessman, who took over majority ownership from long-time president Jean-Michel Aulas in December 2022.

Textor, who also owns stakes in Botafogo (Brazil) and Molenbeek (Belgium), recently sold his 43 percent holding in Premier League club Crystal Palace for £190 million to Woody Johnson, owner of the NFL’s New York Jets.

The club confirmed that its Eagle Football Group had injected €83 million in equity, while high-profile departures, including Rayan Cherki (sold to Manchester City), Maxence Caqueret (to Como), Alexandre Lacazette, and goalkeeper Anthony Lopes (both released), have significantly reduced its wage bill.

“Thanks to the equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved considerably, and we have more than sufficient resources for the 2025-2026 season,” the statement said.

Despite finishing sixth in Ligue 1 and qualifying for the Europa League, Lyon now face the prospect of playing in Ligue 2 for the first time since 1989. If the relegation is upheld, Stade de Reims is expected to replace them in the top flight.

Reacting to the development, former president Jean-Michel Aulas expressed dismay on social media platform X: “It’s a terrible blow to all those who love Lyon. For 36 years I made sure that such a situation could not happen. Today, it’s sadness that dominates. And an immense failure to understand.”

Lyon, one of France’s most decorated clubs, famously won seven consecutive Ligue 1 titles between 2002 and 2008. Only five clubs have won more league titles, with Paris Saint-Germain leading at 13.

The club is due to begin pre-season preparations on July 7 while awaiting the outcome of the appeal.

AFP