In a shocking turn of events, French football club Olympique Lyonnais (Lyon) has been demoted to Ligue 2, the second division of French football, due to financial mismanagement. The decision, announced by the DNGC, the body that oversees the accounts of French professional football clubs, follows a meeting between Lyon officials, including owner John Textor, and the DNGC on Tuesday.
The club, seven-time French champions, had been provisionally demoted back in November due to their poor financial state. Despite presenting a plan to improve their financial situation, the DNGC was not convinced that the club had made sufficient progress to lift the relegation penalty. Last October, Textor's Eagle Football Group, which owns a 77% stake in Lyon, announced debts of £422m.
Lyon's relegation could have significant implications for Crystal Palace's hopes of playing in Europe next season, as their participation is currently in doubt due to Uefa rules, which prevent multiple teams under one multi-club ownership structure from competing in the same European competition. Textor owns stakes in both clubs, although he agreed to sell his 43% share in Palace on Monday.
In a statement, Lyon expressed their disbelief at the decision, stating, "With proven funds and sporting success that has earned us a place in European competition for two consecutive years, we sincerely do not understand how an administrative decision could relegate such a major French club." The club intends to appeal the decision.
Lyon's relegation comes after a series of cost-cutting measures, including the sale of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June, as well as the release of high earners such as Alexandre Lacazette and Anthony Lopes.
If Lyon's appeal is unsuccessful, they will be replaced in Ligue 1 by Reims, who were beaten in the relegation play-off by Metz. Lyon have won seven French titles, a record equaled only by five other clubs. They have not played in Ligue 2 since 1989.
The news of Lyon's relegation has raised hope at Palace that the issue of their potential breach of Uefa's rules might disappear, as Lyon could lose their sixth-place finish in Ligue 1. However, the club is still awaiting clarification on what this means for their European hopes. The decision could have implications for other clubs, such as Nottingham Forest, who stand to gain if Palace lose their Europa League status.
There are concerns that Lyon might take their fight further, prolonging the uncertainty. The question remains whether Lyon will be able to convince the authorities that they are rectifying their financial state enough to lift their relegation, and whether their punishment will be delayed until the appeals processes are complete.
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