Lyon Relegated Over Finances Despite $254M Cash Boost — Club Vows To Fight Back

Seven-time French champions Olympique Lyonnais have been relegated to the second division of French football due to ongoing financial turmoil, despite recent moves to stabilize their finances — including a major $254 million stake sale by owner John Textor.

The club, owned by American businessman John Textor, announced plans to appeal the decision immediately, calling it “incomprehensible” and unjustified given recent efforts to comply with financial regulations.

The relegation, officially upheld on Tuesday by France’s financial watchdog — the DNCG (National Directorate of Management Control) — comes after a provisional demotion in November. The club was cited for €175 million (about $203 million) in debt and a lack of a convincing financial recovery plan. A transfer ban was also imposed during the January window.

Lyon responded sharply to the ruling:

“Olympique Lyonnais takes note of the incomprehensible decision handed down by the DNCG this evening and confirms that it will appeal immediately,” the club said in a statement.

“With demonstrated funds and sporting success that has earned us a place in European competition two years running, we sincerely fail to understand how an administrative decision could relegate such a great French club.”

The ruling landed just 24 hours after Premier League side Crystal Palace confirmed that Woody Johnson, owner of the NFL’s New York Jets, had signed a legally binding deal to buy Textor’s 43% stake for $254 million — a move that significantly boosted Lyon’s liquidity.

“Thanks to the equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved considerably, and we have more than sufficient resources for the 2025/26 season,” Lyon added.

Back in October, Textor’s Eagle Football Group disclosed debts of nearly $575 million, triggering deeper scrutiny over Lyon’s financial stability. Textor’s proposal to transfer funds from Brazilian club Botafogo, another of his holdings, was blocked by regulators.

Still, club leadership remained confident, believing they had met the DNCG’s requirements.

Textor, 59, also expressed optimism before the final decision:

“You can see from the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA licensing process. Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably,” he said.

As the legal appeal begins, Lyon now faces the daunting challenge of reversing the decision and safeguarding its historic legacy in French football.