Olympique Lyon's relegation overturned: club allowed to remain in Ligue 1

Olympique Lyon will remain in France's top division after all. The club successfully appealed the relegation to Ligue 2 that had previously been imposed by the DNCG, the financial watchdog of French professional football.

SoccerDino, Website Writer
Published: 04:09, 9 Jul 2025

Olympique Lyon has narrowly avoided what would have been one of the most dramatic downfalls in its modern history, after successfully appealing a relegation to Ligue 2 imposed by the DNCG, the financial watchdog of French professional football.

The initial decision to demote the club came last week, following a damning financial review that revealed alarming economic instability, including a reported debt burden of €175 million. The DNCG cited “a lack of sufficient and credible measures” to address the club’s deteriorating financial health, prompting the unprecedented decision to revoke Lyon's license to compete in Ligue 1.

The ruling sent shockwaves throughout French football, not only because of the stature of the club a seven-time Ligue 1 champion and regular European competitor but also because of its implications for the competitive balance of the league. Lyon had finished the 2023/24 season with strong momentum, surging up the table after a disastrous start and securing a place in the UEFA Europa League through a stunning Coupe de France victory. The relegation, therefore, threatened not only their domestic standing but also their rightful spot in European competition.

Immediately after the ruling, tensions boiled over in Lyon. Fans gathered in protest, marching through the city and demanding the resignation of American owner John Textor, who had acquired a controlling stake in the club in late 2022. Supporters blamed him for the club’s financial disarray, citing poor management, questionable transfers, and an unstable leadership structure. The pressure became too much to bear, and within days of the DNCG ruling, Textor officially stepped down from his role, paving the way for a radical restructuring of the club’s executive leadership.

The new management team, formed in response to both internal and external pressures, moved swiftly to stabilize the club’s situation. A revised financial plan was presented to the DNCG, backed by renewed commitments from shareholders and a group of external financiers. According to reports from French media, the new proposal included the injection of fresh capital, the restructuring of outstanding debts, and a more sustainable wage structure. The presentation also emphasized the club’s significant asset base including its training facilities, academy, and stadium as well as long-term commercial partnerships that remain in place despite recent turbulence.

On Wednesday, the DNCG announced that it had accepted Lyon’s appeal. The ruling not only reinstated the club in Ligue 1 but also reaffirmed its right to compete in the Europa League, restoring a sense of normalcy and relief among players, staff, and fans alike. The decision marks a crucial turning point in Lyon’s trajectory and offers a much-needed opportunity to reset and rebuild both financially and competitively.

In a detailed statement, the club thanked all those who had supported it during the crisis:
“The new management, supported by the dedication and commitment of shareholders and financial backers, is extremely grateful for all the support received from fans, staff, players, partners, and local officials both within and outside the club. This ruling is an important first step toward rebuilding trust in Olympique Lyon. The club can now fully focus on its sporting goals and prepare optimally for the upcoming season.”

Behind the scenes, work has already begun to ensure that the club avoids similar crises in the future. The recruitment department is reportedly under review, with more emphasis expected on academy development and smart financial planning. With the transfer window open, Lyon’s board is now working to balance the squad possibly through key sales while maintaining competitiveness both domestically and in Europe.

For the supporters, who felt betrayed and powerless during the weeks of uncertainty, the outcome is a partial vindication of their activism. Their vocal protests helped catalyze change at the top of the organization, and their unwavering passion proved once again that Olympique Lyon is more than just a football club it’s a symbol of regional pride and identity.

As the club now turns its attention to preseason preparations and its return to European competition, Lyon faces a long road ahead. But for the first time in months, there is renewed hope, a new sense of direction, and the belief that the darkest days may now be behind them.

Updated: 04:09, 9 Jul 2025