French heavyweights Lyon have been relegated to Ligue 2 after failing to resolve their financial problems, Afrosport reports.
The seven-time French Ligue 1 champions were provisionally relegated last November due to huge debts owed by the club.
The club hierarchy, led by owner John Textor, on Tuesday had a meeting with the National Directorate of Management Control (DNCG), which is responsible for overseeing the finances of French professional football clubs.
The DNCG, however, upheld the previous relegation ruling, citing Lyon’s failure to prove that they have significantly improved their financial situation.
Lyon remain in a dire financial situation despite the sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City last month, which raised a combined £45 million for the club.
They also released big earners like former Arsenal striker Alexander Lacazette and goalkeeper Anthony Lopes.
Lyon, who finished sixth in Ligue 1 last season and qualified for the Europa League, have the right to appeal the decision made by the DNCG.
A statement from the club read: “Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.
“In recent months, we have worked closely with the DNCG, satisfying all of its requests with cash equity investments exceeding the amounts requested. Thanks to the equity contributions of our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025/26 season.
“With so much cash liquidity demonstrated, and sporting success which has earned European competition in two consecutive years, we sincerely do not understand how one administrative decision could relegate such a great French club. Through our appeal, we will establish our substantial cash resources as necessary for Olympique Lyonnais to keep its place in Ligue 1.”
Lyon would be replaced by Reims, who lost to Metz in the relegation play-off, if the punishment is upheld after the appeal.
