Lyon relegated to French soccer’s second tier amid ongoing financial problems

By: The Associated Press Posted: 3:06 PM CDT Tuesday, Jun. 24, 2025 Last Modified: 4:35 PM CDT Tuesday, Jun. 24, 2025

Advertise with us

PARIS (AP) — Seven-time French champion Lyon was relegated to the second tier on Tuesday because of ongoing financial irregularities.

Read this article for free:

or

Already have an account? Log in here »

To continue reading, please subscribe:

*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.

PARIS (AP) — Seven-time French champion Lyon was relegated to the second tier on Tuesday because of ongoing financial irregularities.

Read unlimited articles for free today:

or

Already have an account? Log in here »

Hey there, time traveller!
This article was published 24/06/2025 (463 days ago), so information in it may no longer be current.

PARIS (AP) — Seven-time French champion Lyon was relegated to the second tier on Tuesday because of ongoing financial irregularities.

The decision followed an audit of the club’s finances by the French league’s soccer watchdog, known as DNCG. French sports daily L’Equipe estimated Lyon’s current debt at 175 million euros ($203 million). Lyon was expected to appeal the decision.

The club called it an “incomprehensible decision” and said it will “immediately file an appeal.”

FILE - John Textor, Chairman of Eagle Football Holdings, speaks during the FT Business of Football Summit in London, Thursday, Feb. 29, 2024. (AP Photo/Kin Cheung, File)

The DNCG had already provisionally relegated Lyon to Ligue 2 in November, with the club reporting at the time that it had more than 500 million euros ($581 million) of debt. A transfer ban was also imposed in the January transfer window.

Lyon is owned by American businessman John Textor, who has stakes in Brazil’s Botafogo and Premier League team Crystal Palace.

Textor was present for the hearing in Paris on Tuesday.

On Monday, Crystal Palace announced that New York Jets owner Woody Johnson signed “a legally binding contract” to buy Textor’s shares. Textor has a 43% stake in the London club. Reports have placed the price between $220 million and $260 million.

“In recent months,” Lyon’s statement read Tuesday, “we have worked closely with the DNCG, satisfying all of its requests with cash equity investments exceeding the amounts requested. Thanks to the equity contributions of our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025-26 season.”

Lyon said in its appeal it will “establish our substantial cash resources as necessary” to stay in Ligue 1.

“With so much cash liquidity demonstrated, and sporting success which has earned European competition in two consecutive years, we sincerely do not understand how one administrative decision could relegate such a great French club,” it said.

Two weeks ago, Lyon received a much-needed cash injection by selling coveted playmaker Rayan Cherki for 36 million euros.

But the club has been under growing pressure.

Two years ago, the DNCG decided to monitor the club’s transfer activities, saying its moves on the market would be limited under “a framework for wage costs and transfer indemnities.”

Lyon won its seven league titles from 2002-08 and reached the Champions League semifinals in 2020.

Lyon narrowly lost to Manchester United in the Europa League quarterfinals and missed out on a cash windfall when it failed to qualify for next season’s Champions League after finishing sixth in Ligue 1. ___

AP soccer: https://apnews.com/hub/soccer