Official: Olympique Lyon relegated to Ligue 2 but will play in the Europa League

June 24, 2025, France — One of France's most decorated football clubs, Olympique Lyon, has officially been relegated to Ligue 2 following a decision by the French football financial watchdog DNCG. Despite finishing in a European competition spot and securing a place in the 2025/26 Europa League, the club failed to convince the regulator of its financial viability.

The DNCG (National Directorate of Management Control), the French authority overseeing professional football finances, ruled that Lyon did not provide sufficient guarantees of financial stability. According to French media, the club's debt exceeds €90 million, with some sources reporting figures as high as €500 million. Back in November 2024, the regulator had already imposed a transfer ban and a provisional relegation, demanding immediate major investment.

Lyon’s management emphasized that significant work had been done with the DNCG in recent months, including securing shareholder funds and even selling English club Crystal Palace, but it still wasn’t enough.

Club Statement
“Olympique Lyonnais acknowledges the inexplicable decision of the DNCG and officially announces it will appeal immediately. With the funds raised and improved liquidity, we have the resources required to participate in Ligue 1. This decision is unfair to a club that has qualified for European competition two years in a row.”

The club intends to challenge the verdict urgently and aims to prove its financial reliability.

Europa League Participation – Unchanged
Despite the relegation, the club retains its place in the Europa League. According to current UEFA regulations, a team that has earned qualification on sporting merit is not stripped of its license even if it plays in the second division. Thus, Lyon becomes a rare case: a team playing in a European tournament without representing the top domestic league.

A Historic Event
This marks Lyon’s first relegation since 1989, when the team was managed by Raymond Domenech. Since then, the club spent decades at the top of French football, winning seven consecutive Ligue 1 titles in the 2000s and regularly competing in the Champions League.

What’s Next?

• Appeal: The club has confirmed it will file an appeal. It has a limited time to provide additional financial guarantees.

• Transfers: The temporary ban on registering new players could be reinstated.

• International Oversight: UEFA is closely monitoring the situation, especially given that Lyon’s owners were recently involved in the sale of Crystal Palace, a matter sensitive under multi-club ownership rules.

Conclusion
The DNCG’s decision came as a shock to both fans and the wider football community. Despite its success on the pitch, the club failed to prove its financial stability. Now, Lyon’s future depends on the outcome of the appeal — a successful one could keep them in Ligue 1, while failure would mean a rebuilding journey from Ligue 2, all while competing in Europe.

UPDATED (9 July): Official: Lyon to remain in Ligue 1 — DNCG appeal committee decision