By: Kwame Bediako
Olympique Lyonnais has secured a crucial victory off the field by overturning its administrative relegation to Ligue 2, allowing the club to remain in France’s top division for the 2025-2026 season. The decision by the DNCG appeals committee on Wednesday, July 9, 2025 follows Lyon’s presentation of a robust financial plan under new leadership, convincing the French football financial watchdog that the club can meet strict fiscal requirements.
Despite the reprieve, Lyon will operate under tight restrictions on payroll and transfer spending to ensure financial stability.
The club’s new president, American businesswoman Michele Kang, who took over last week after John Textor’s resignation, led the appeal alongside general manager Michael Gerlinger.
Lyon expressed gratitude for the ruling, stating, “Olympique Lyonnais welcomes today’s decision by the DNCG to keep the club in Ligue 1. We thank the appeals committee for recognizing the ambition of the club’s new management, which is determined to ensure serious management in the future.”
Lyon’s financial woes, which included debts estimated at €175 million and a bloated wage bill, had initially prompted the DNCG to relegate the club. However, the club’s recent efforts, including raising approximately €54 million from player sales such as Rayan Cherki’s transfer to Manchester City, helped convince the regulators of its improved financial footing. The club also parted ways with high earners Alexandre Lacazette and Nicolás Tagliafico to reduce salary burdens.
Remaining in Ligue 1 also guarantees Lyon a spot in next season’s Europa League after finishing sixth last campaign. However, the club now faces the challenge of assembling a competitive squad within the new budgetary constraints imposed by the DNCG.
The ruling also impacts Crystal Palace, another club owned by Lyon’s majority shareholder Eagle Football Holdings, whose European qualification hopes hinge on Lyon’s status.
With John Textor stepping down from the board and Kang taking charge, Lyon aims to focus fully on sporting objectives while adhering to stringent financial controls. The club’s survival in Ligue 1 marks a turning point, but the path forward demands careful management to restore both fiscal health and competitive success.
