Lyon Relegated to Ligue 2 Over Financial Scandal Despite Top-Six Finish

In a shocking turn of events, Olympique Lyonnais have been relegated from Ligue 1 to Ligue 2 — not due to poor performance on the pitch, but as a result of severe financial irregularities.

The decision, confirmed by French football’s financial watchdog, the DNCG, follows mounting concerns over the club’s finances. Despite finishing 6th in the 2024–25 Ligue 1 season and qualifying for European competition, Lyon’s relegation is a disciplinary measure tied to over €500 million in debt and failure to meet financial compliance requirements.

Earlier, the DNCG had imposed a transfer ban and warned the club to raise substantial funds and reduce its wage bill. Lyon were unable to satisfy those conditions in time, prompting the formal decision to demote the club to Ligue 2.

The club is expected to appeal the ruling, but unless the decision is overturned, Lyon — one of France’s most storied football institutions — will begin next season in the second tier for the first time in over three decades.

This marks a stunning fall from grace for a club that once dominated French football and regularly competed in the UEFA Champions League.