French football club Lyon, which has won the league seven times, has been dropped to Ligue 2 because of financial problems. The club is owned by American businessman John Textor.
Lyon has said it will fight the decision by filing an appeal.
Back in November, the club was warned it might be relegated due to large debts. Although Lyon sold several key players to fix the issue, the financial body that oversees French clubs, called the DNCG, decided on Tuesday that the club must still be demoted.
In November, the DNCG raised concerns over Lyon’s €175 million debt and said the club didn’t have a clear plan to reduce it. As a result, Lyon was also banned from signing new players during the January transfer window.
Lyon disagreed strongly with the DNCG’s decision. In a statement on Tuesday, the club said they had done everything asked of them and found the ruling hard to understand.
“Olympique Lyonnais is surprised by this decision and will appeal right away,” the club stated. “We’ve met all requirements and even qualified for European football two years in a row. We don’t understand why such a historic club is being relegated for administrative reasons.”
This happened just one day after English Premier League club Crystal Palace announced that Textor had sold his 43% stake for $254 million to Woody Johnson, owner of the New York Jets.
Lyon also said that this sale, along with money from other investors, has boosted their cash flow and that they now have enough funds to manage the 2025/26 season.
In October, Textor’s company, Eagle Football Group, revealed it owed nearly $575 million. This made many worry about Lyon’s financial health. A plan to move funds from Botafogo, another club Textor owns in Brazil, to help Lyon was rejected.
Still, Lyon officials were hopeful on Tuesday that they could explain everything clearly and avoid relegation.
Textor also spoke confidently before the decision came out. “We’ve added fresh funds for both the DNCG and UEFA requirements. Plus, the Crystal Palace sale helped our finances a lot,” he told reporters.
