Lyon relegated to Ligue 2

In a stunning turn of events, Olympique Lyonnais have been relegated from Ligue 1—not due to poor performance on the pitch, but as a result of serious financial irregularities.

Despite finishing 6th in the 2024–2025 Ligue 1 season, well above the relegation zone, the French football financial watchdog, the DNCG, has demoted the club to Ligue 2 over mounting debts and alleged financial mismanagement. Lyon reportedly carry a debt burden exceeding €500 million.

The DNCG had initially issued a provisional relegation and imposed a transfer ban in late 2024, giving the club time to present a credible financial restructuring plan. However, after months of scrutiny and failed attempts to stabilize their finances, the French football authorities made the relegation official in June 2025.

The decision has sent shockwaves across French football, as Lyon—one of the country’s most storied clubs—is now facing the prospect of second-tier football for the first time in decades. The club is expected to appeal the ruling in a last-ditch effort to retain its top-flight status.

While on-field performance had secured them a Europa League spot, Lyon’s off-field troubles have now overshadowed their sporting achievements, raising questions about governance and oversight within the club’s leadership.