Shock in Ligue 1: Lyon Relegated to Ligue 2 Over €500M Debt Despite Europa League Finish

In a bombshell decision shaking the foundations of French football, Olympique Lyonnais have been officially relegated from Ligue 1 to Ligue 2—not due to their performance on the pitch, but because of staggering financial mismanagement and over €500 million in debt.

Despite securing a 6th-place finish in the 2024–2025 Ligue 1 season and clinching a Europa League spot, Lyon have been punished by the DNCG, France’s football financial watchdog, for what it described as serious breaches of fiscal responsibility.

The DNCG (Direction Nationale du Contrôle de Gestion) had flagged Lyon in late 2024, issuing a transfer ban and a provisional relegation warning, giving the club time to restructure its finances. But after multiple extensions, reviews, and failed rescue proposals, the DNCG made its final ruling in June 2025, citing unsustainable debts and inadequate governance.

This marks a historic and humiliating fall for one of France’s most decorated clubs—a team that dominated Ligue 1 in the 2000s with seven consecutive league titles and has long been a fixture in European football.

“A Betrayal of the Badge” – Fans and Players React

The decision has left fans devastated and confused, with supporters calling it “a betrayal of the badge.” Club legends and current players have expressed frustration, as their on-pitch success has now been erased by boardroom failure.

Several top players are expected to seek transfers, and Lyon could also lose their Europa League qualification, as UEFA regulations prohibit participation from clubs in financial turmoil.

Appeal in Motion, But Odds Slim

Lyon are expected to file an urgent appeal, but sources close to the DNCG suggest the club’s inability to present a sustainable restructuring plan makes reinstatement unlikely.

Insiders blame years of overspending, poor commercial strategy, and questionable leadership, especially since the controversial takeover by American businessman John Textor in 2022.

What’s Next?

This unprecedented relegation sets a chilling precedent for European football and raises questions about financial transparency and accountability among top-flight clubs. For Lyon, the road ahead looks long and uncertain—from a Europa League hopeful to a Ligue 2 struggler in the blink of an eye.

One thing is clear: this is not just a relegation. It’s a reckoning.