Lyon have officially avoided being relegated to Ligue 2 following the initial decision to demote the club from Ligue 1.
Lyon have avoided relegation to Ligue 2 after a successful appeal to French football’s financial watchdog, which had initially demoted the club over financial irregularities.
The decision comes as American businesswoman Michele Kang officially replaces John Textor as club president.
The Direction Nationale du Contrôle de Gestion (DNCG), France’s financial regulatory body for football, had placed Lyon under budgetary restrictions in November 2024. In June 2025 the establishment ruled that the club would be relegated due to concerns over its financial stability.
However, the appeals commission has now overturned that decision, allowing Lyon to remain in Ligue 1.
In response, the French Football Federation (FFF) has mandated that Lyon significantly reduce its wage bill and transfer expenditures for the upcoming season.
“Lyon would like to thank the appeal commission after it recognised the ambition of the new management of the club,” the club said in an official statement. “Today’s decision constitutes the first step of re-establishing trust in Lyon.”
Despite the off-field turmoil, Lyon finished sixth in Ligue 1 last season, securing a place in the 2024–25 UEFA Europa League. The team will be allowed to compete in the tournament after the successful appeal, although the club had previously agreed to pay a financial penalty to UEFA.
