Lyon relegated after stunning decision sees Ligue 1 giants rocked by league authorities

Seven-time French champions Lyon were shockingly relegated to Ligue 2 on Tuesday evening after failing to meet financial guarantees demanded by football authorities.

Les Gones, a titan of French football and a constant in the top division since the 1989/90 season, face the prospect of second-tier football following a rigorous audit of their accounts. The club have already announced plans to challenge the verdict without delay.

The squad, which secured a respectable sixth place in Ligue 1 last campaign, saw their provisional demotion by the National Directorate of Management Control (DNCG) made official.

Lyon's official statement declared: "Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal."

Within the statement, Lyon added: "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."

The shocking revelation comes just a day after Lyon's owner John Textor offloaded his shares in Crystal Palace to New York Jets supremo Woody Johnson - a move seemingly designed to secure the Premier League team's spot in the Europa League.

Palace's eligibility for the tournament was cast into doubt due to Textor holding stakes in both Lyon and Palace, with both clubs set to compete in the same competition. Yet, it was believed that since the ownership switch occurred post the March 1 cut-off, it would likely have negligible effect on UEFA's final ruling.

According to past regulations, Lyon, having finished 6th, would have been granted entry to the Europa League over Palace, who ended up in 12th place. Nonetheless, Lyon's potential confirmed demotion could inadvertently pave the way for the FA Cup champions.

Lyon's precarious financial situation also led to the transfer of their key player Rayan Cherki to Manchester City for a fee in the region of £34million. Moreover, Maxence Caqueret was let go to Como in January, bringing the total income from sales to approximately £45m for the club.

Lyon have waved goodbye to top earners Alexandre Lacazette and Anthony Lopes in an effort to trim the wage bill, but the club has been dealt a hefty blow by being subjected to stringent financial sanctions.

Textor appeared bullish about resolving financial issues before a rendezvous with DNCG this week, stating confidently: "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."

Alas, it emerged that Textor's Eagle Football Group had accumulated debts near £422m and his strategy to slash expenditures had fallen short of DNCG's expectations.

Despite the clouds hovering over his Lyon adventure, Textor's departure from Crystal Palace was officially inked on Monday, transferring his stakes to an American billionaire whose identity remains undisclosed.

This new tycoon will inherit the same structure at Palace as Textor, holding 43 per cent of the club but wielding merely a quarter of its voting power. Chairman Steve Parish, along with US patrons Josh Harris and David Blitzer, will continue to influence the Eagles' destiny.