Sensation in France: Olympique Lyon forced to relegate from Ligue 1

A bombshell in the French Ligue 1: Former football champions Olympique Lyon have been demoted to Ligue 2 by the National Control and Management Directorate (DNCG) due to financial violations. The French Professional Football League (LFP) announced this on Tuesday evening.

At a hearing on Tuesday afternoon, Lyon tried unsuccessfully to convince the French financial regulator to lift the measures imposed on the seven-time champions in November, including the administrative downgrade.

OL owner John Textor had previously expressed confidence after seven months of trying to rebalance the club's balance sheet. "Everything is financially sound," assured the chairman of Eagle Football Holding. Following an €83 million cash injection, an agreement with the club's creditors was reached in January.

Lyon also reduced salaries through a voluntary severance plan for around 100 employees and the departure of high-profile players such as club icon Alexandre Lacazette. Transfers such as that of Rayan Cherki to Manchester City helped stabilize finances.

Olympique can appeal the decision. If the decision is upheld, Stade Reims could take Lyon's place in Ligue 1. The club lost the playoffs to FC Metz (1-1/1-3 after extra time).

RND/SID