Lyon, the seven-time French champions, was demoted due to financial difficulties
The DNGC, which is in charge of the accounts of French professional football clubs, temporarily relegated the team in November.
Although Lyon officials, including owner John Textor, met with the DNGC on Tuesday, they were unable to persuade the board that the club’s financial status had improved enough to warrant the suspension.
His 77% Lyon holding, Eagle Football Group, revealed £422 million in debt last October.
Lyon said they would appeal the DNGC’s decision, calling it “incomprehensible” un a statement.
“With proven funds and sporting success that has earned us a place in European competition for two consecutive years, we sincerely do not understand how an administrative decision could relegate such a major French club,” the organization said.
“We will appeal to demonstrate our ability to provide the necessary financial resources to guarantee OL’s place in Ligue 1.”
The seven-time French champions Lyon tried to boost their finances by selling Rayan Cherki to Manchester City in June and Maxence Caqueret to Como in January, raising about £45 million.
Also released are high earners like Anthony Lopes and Alexandre Lacazette.
Lyon has the right to challenge the ruling. Reims, which lost to Metz in the relegation play-off, will take Lyon’s position in the top division if it remains the same.
The seven French titles that Lyon has won in consecutive seasons from 2002 to 2008 are the most of any team.
As recently as 2020, the team advanced to the Champions League semifinals; they haven’t participated in the second division since 1989.
Textor reaffirmed his optimism before to Tuesday’s meeting, saying that there was “no chance” the club would be demoted when the provisional sanction was handed down in November.
“We have made a variety of investments in recent weeks,” he explained. “Everything is good financially.”
Textor also co-owns Crystal Palace in the Premier League and is the biggest stakeholder of Botafogo in Brazil, but on Monday he reached an agreement to sell his 46% ownership of the Eagles.
“Over the past few months, we have worked closely with the DNCG, fulfilling all of its requests with equity investments that exceeded the required amounts,” Lyon stated in his statement.
“Thanks to capital injections from our shareholders and the sale of Crystal Palace, our cash flow has significantly improved and we now have more than sufficient financial resources for the 2025-26 season.”
Despite winning the FA Cup, Palace’s spot in the Europa League is in jeopardy because Lyon also qualified by placing sixth in Ligue 1.
Due to Uefa regulations that prohibit several teams under a same multi-club ownership structure from participating in the same European competition, Textor’s alleged participation with both clubs may be in violation.
With Textor selling his interest to Woody Johnson of the New York Jets, the Eagles hope that situation won’t arise.
After being demoted from Ligue 2 to the French fourth division due to bankruptcy, six-time Ligue 1 champions Bordeaux were forced to give up their professional status last year.
