Everyone was shocked by the harsh decision of the French Football Financial Supervisory Authority on Tuesday, relegating Lyon to the second division.
Lyon is one of the most important and largest French teams in history, having won the French league title seven times, is also a regular presence in European competitions, and enjoys immense popularity both at home and abroad.
Last season, Lyon finished sixth in the French league, qualifying for the Europa League. However, it is still threatened with European relegation despite the club’s efforts to resolve the crisis.
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Why was Lyon relegated to the French second division?
This was not the first time the authority had relegated Lyon. A similar decision was issued last November due to mounting debts, which forced the club to sell many of its stars during the last winter transfer window.
Lyon has recently made larger sales, the most recent of which was Rayan Cherki to Manchester City. However, this was not enough to clear the accumulated debt, which is said to be €500 million. The decision was made during a meeting of the board with the Sports Directorate of Administrative Control to uphold relegation this time.
John Textor is the owner of Lyon, and the heavy fine comes just hours after he announced the sale of his stake in another club, Crystal Palace, to New York Jets owner Woody Johnson, hoping to help settle the debt.
🚨 OFFICIAL: Olympique Lyon have been relegated to Ligue 2.
The club has the possibility to appeal the decision. pic.twitter.com/T4UKbqYQBV
— Fabrizio Romano (@FabrizioRomano) June 24, 2025
The sale decision was made to allow Lyon to participate in the Europa League next season, under UEFA rules that prevent two clubs with the same owner from participating in a single European competition. However, the Premier League has yet to approve the sale, as Johnson will first undergo what is known as the new owners’ test.
If the relegation decision is confirmed again, Lyon will be excluded from European competition even if the sale of Crystal Palace is successful.
Lyon Responds to Relegation Penalty
The penalty came as a complete shock to Lyon, especially to owner Textor, who had assured L’Equipe a few weeks earlier that relegation would not happen and that things would stabilize soon. Then came Tuesday’s meeting, which was a blow to the French giants.
Lyon issued an official statement calling the board’s decision “unjustified,” noting that the club had complied with all its demands with equity investments exceeding the required amounts.
The statement continued, “Thanks to the contributions of the club’s shareholders and the sale of Crystal Palace, our financial situation has improved significantly, and we now have more than enough resources for next season.”
The club also announced in the statement that it would appeal the decision, through which Lyon’s management will demonstrate its ability to provide the financial resources necessary to ensure the team’s continued presence among the elite in the French league.
In addition to the appeal, Lyon is expected to sell a number of other players to reduce the club’s debt. It is reported that the first to leave will be Malick Fofana, who has received a significant offer from Chelsea.
Harsh criticism of owner Textor
French media outlets believe the main reason for the “utter chaos” at Lyon is club owner Textor, who has completely failed in management, accumulated debt, and failed to take the matter seriously last November.
Expert John Lawrence told Sky Sports, “Lyon’s debts last November were €200 million, and Textor’s only plan was to sell a number of players in January and the summer before the end of June to resolve the crisis.”
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He added, “The real crisis is that Lyon now doesn’t have enough time to implement the plan until it files an appeal. I see the club in a very difficult situation. The club is literally running against time.”
He concluded, “Since his arrival, John Textor has caused total chaos at Lyon. He was one of the worst owners in the club’s history. He spread corruption, spent a lot of money in vain, and began dismissing coaches and making many incorrect administrative appointments. Lyon is in a real predicament with him.”
