French football giants Olympique Lyonnais find themselves in turbulent waters. The club has reportedly been relegated to the second tier, Ligue 2, by the National Directorate of Management Control (DNCG), the independent body responsible for monitoring the finances of French football clubs.
This decision comes approximately seven months after Lyon was initially placed under provisional relegation measures due to concerns over significant financial liabilities. The DNCG`s role is crucial in maintaining the financial stability and integrity of French leagues, and its rulings are based on clubs demonstrating their ability to meet financial commitments.
In a swift and strong response, Olympique Lyonnais has announced it will immediately file an appeal against the DNCG`s verdict. The club`s ownership, led by American businessman John Textor, argues that the decision is “incomprehensible,” particularly given recent actions taken to bolster the club`s financial position.
The appeal hinges on the assertion that the club now possesses more than sufficient financial resources to operate effectively, not just for the upcoming season but extending into the 2025/26 campaign. Lyon highlights recent equity contributions from shareholders and, crucially, the planned sale of a stake in Crystal Palace Football Club – another entity within Textor`s Eagle Football Holdings portfolio – as evidence of improved liquidity. The reported sale of the Crystal Palace stake is a substantial financial maneuver aimed at injecting much-needed capital.
Furthermore, Lyon points to its recent sporting performance as a reason to question the DNCG`s decision. Despite the financial constraints, the team finished sixth in Ligue 1 during the 2024-25 season, securing qualification for the UEFA Europa League. The club`s statement suggests a disconnect, effectively asking how a team achieving continental qualification could simultaneously be deemed financially unfit for its domestic top division. It`s a peculiar situation where success on the pitch clashes head-on with balance sheet realities, creating an ironic backdrop to this regulatory battle.
John Textor was reportedly present at the DNCG hearing, underscoring the gravity with which the club is treating this matter. While efforts like player sales (including notable transfers) and the aforementioned equity injections have been made, the DNCG`s ruling suggests these measures were either insufficient in the eyes of the regulator or perhaps the timing of capital availability (such as the final receipt of funds from the Palace sale) was a factor.
The appeal process provides Lyon with a critical window to present their case anew and convince the relevant authorities that their financial structure is robust enough to remain in Ligue 1. The future of one of France`s historically significant clubs now rests on the outcome of this financial and legal challenge, highlighting the stringent financial controls in place within European football leagues.
