Paulo Fonseca’s Lyon has been hit with a major blow after being administratively relegated to Ligue 2 due to serious financial issues.
The ruling, announced Tuesday by France’s financial watchdog; the DNCG (National Directorate of Management Control), can still be appealed.
Club president John Textor and director of football Mickael Gerlinger met with the DNCG in a last-ditch effort to reverse the decision, but their attempt fell short.
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 roots of the crisis trace back to November 15th, when the DNCG first warned Lyon that they risked relegation unless they could provide sufficient financial guarantees to cover a reported €175 million (£149 million) debt.
At the time, Textor remained optimistic, promising “several hundred million euros” in upcoming revenues. But that projection never materialized, and the DNCG held firm on its sanctions.
With their future now hanging in the balance, Lyon; seven-time Ligue 1 champions, face an uncertain road ahead.
