Lyon Provisionally Relegated by DNCG Amid Financial Concerns; Appeal Underway

French football club Olympique Lyonnais has been provisionally relegated by the DNCG, France’s financial watchdog for professional football, following concerns over the club’s financial stability. The ruling, which was first issued in November, was reaffirmed after a recent review failed to convince the regulatory body of sufficient improvement in the club’s fiscal health.

Lyon’s leadership, including majority owner John Textor, met with DNCG officials on Tuesday in a last-ditch effort to overturn the sanction. However, the meeting did not yield the desired outcome, and the decision to relegate the club was upheld.

The financial issues stem primarily from the mounting debt linked to Textor’s Eagle Football Group, which owns a 77% stake in Lyon. As of October last year, the group had reported debts totaling approximately £422 million. Despite recent attempts to restructure and stabilize finances, the DNCG remained unconvinced of Lyon’s ability to meet the financial requirements necessary to remain in France’s top flight.

In an official statement, Lyon described the decision as “incomprehensible” and confirmed it would be lodging an appeal in an effort to reverse the ruling.

The implications of the DNCG’s decision could extend beyond French football. Lyon’s financial struggles may also impact the European competition eligibility of English Premier League club Crystal Palace, which had previously shared an ownership link with Lyon through John Textor.

Although Textor recently agreed to sell his 43% stake in Crystal Palace, uncertainty remains over whether the timing and terms of the sale will align with UEFA’s multi-club ownership rules. Under current UEFA regulations, clubs with overlapping ownership structures are barred from participating in the same European competitions to avoid conflicts of interest.

Crystal Palace’s qualification for next season’s UEFA Europa League adds urgency to the situation, with UEFA expected to scrutinize the sale and ownership changes before confirming the club’s participation.

Lyon’s appeal process is expected to proceed swiftly in the coming weeks, as the club seeks to resolve the financial issues and restore its top-tier status. Meanwhile, both the club and its supporters face a period of significant uncertainty as they await the outcome.