Olympique Lyonnais Relegated to Ligue 2 Over Financial Black Hole of €175 Million

In a shocking story that has sent waves through the football world, Olympique Lyonnais, one of the most storied and well-known football clubs in France, has officially been relegated to Ligue 2, not based on the play on the field but due to a failure to comply with financial regulations due to a financial black hole of more than €175 million in their accounts.

The decision, made late last night by the DNCG (Direction Nationale du Contrôle de Gestion), France’s financial investigator for football clubs, came after months of investigating, emergency audits, and failed appeals.

Just five years ago, Lyon were semi-finalists in the UEFA Champions League, and considered one of the stronger teams in Ligue 1. Today, they face the horrific tournament of second division football for the first time in 1989 — not because they do not have talent or long term prospects, but because of what some within the organization have called “financial incompetence on a breathtaking scale.”

Club financial problems had long before the current crisis. Under John Textor’s Eagle Football Holdings, Lyon committed to playing aggressive football, and spent unrelentingly on player recruitment, stadium upgrades, and international ventures. The intentions were clear, “return Lyon to European elite,” but the action left huge holes in their balance sheets.

Lyon’s efforts to procure emergency capital, including discussions of selling naming rights, saw the potential sale of prominent players, and borrowing pending future TV rights, were either blocked, deemed too small.,

Lyon supporters, gathered outside the Groupama Stadium this morning, many in disbelief and a fan carried a sign that read: “From Juninho to ruin – how did we let this happen.”

Meanwhile, football pundits have called it: “France’s biggest football scandal since Marseille’s match-fixing case in 1993.”

Analysts have identified three critical components:

1. Ownership over-leverage: Textor’s Eagle Football owns ownership stakes in multiple clubs (Botafogo, Crystal Palace), stretching resources too thin.
2. Betting on European qualification: Lyon’s budgets relied heavily on their participation in European competition, where they failed to qualify in the previous two seasons.
3. COVID carryover: Many clubs are still suffering from ticketing and sponsorship deferrals or losses during the pandemic, and Lyon never recovered appropriately.

Nevertheless, there is still a sliver of light: Lyon has one of the biggest fanbases in France, a stadium they own – a rarity for Ligue 2 clubs, and if they can mobilize their fanbase and sell well, there is a possibility of a Ligue 1 return; but it will not be easy.

As everything settles down, one question remains – how did a Champions League semi-final contender descend into relegation in just five years?

Lyon’s descent serves as a warning not just to French football, but world football that financial fair play is not just a policy; it is a matter of survival.

for more news visit questeuro.com

About The Author