What's Gone Wrong At Olympique Lyonnais?

Damaged Goods

Last week the DNCG, the French football financial watchdog, bared its teeth and confirmed the relegation of Olympique Lyonnais to Ligue 2.

On the one hand, this was a huge shock, given that Lyon are one of the most storied clubs in France; on the other hand, given the various financial issues that have arisen since American businessman John Textor took over the club in December 2022, it did not come completely out of the blue.

Problems with DNCG

The club itself appeared blindsided by the ruling, “Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.”

Coming into the meeting, Textor had appeared confident, “Everything is good financially”, though he did sound a note of caution, “Our liquidity situation has improved remarkably, but I’ve learned enough about the processes in France that I would never presume anything.”

The American had been equally bullish in November, when the DNCG handed Lyon a provisional relegation, as well as a salary cap and a transfer ban, “I’m confident in our numbers. We will not be relegated, there is no chance.”

If You Know The History

Lyon’s plight seems almost unthinkable, when you consider that they won seven consecutive league titles in the early 2000s. Those heady heights are a distant memory these days, but they still finished sixth in Ligue 1 in the last two seasons.

Indeed, they defeated the mighty Manchester City to reach the Champions League semi-final just five years ago, so this is clearly a big club.

Furthermore, Lyon’s famous women’s team continues to shine, winning their 18th title in 19 years in 2024/25. OL Lyonnes have also won the women’s Champions League on eight occasions, the most of any club.

Takeover

When Textor bought a controlling stake in Lyon in December 2022 at a valuation of €884m, this was the largest takeover in the history of French football, though it was largely funded by “other people’s money”, as provided by US investment firms Ares Management and Iconic Sports Management. His share is now up to around 88%.

As a result, Jean-Michel Aulas, one of the most well-known owners in French football, relinquished control after 36 years in charge.

The new owner was initially upbeat about the club’s prospects, “I think over the next few years we want to go after PSG. We want to win titles here. We are going to show up and we are going to spend.”

However, it’s fair to say that things have not exactly worked out.

Indeed, only this week, the club announced that Textor had resigned from his leadership positions at OL, with Michele Kang appointed chairwoman and chief executive of Eagle Football Group (the rebranded OL Groupe), while Michael Gerlinger took on the role of Director General of OL.

Managerial Changes

Lyon have not helped themselves with a revolving door approach to management, as they have employed no fewer than nine coaches in the last seven years.

After Textor’s arrival, Lauren Blanc, who was the last Aulas hire, was replaced by Fabio Grosso, though the former Italian international lasted less than three months in the hot seat. Pierre Sage managed to remain in place more than a year, but he was then sacked in January 2025.

He was succeeded by experienced Portuguese coach Paulo Fonseca, who was tasked with qualifying for the Champions League, though his most memorable exploit to date was being sent off after his “head made contact” with a referee. This led to a suspension until 30 November, with the team being led by his assistant, Jorge Maciel, in his absence.

It’s the Economy, Stupid

At the end of the day, it all comes down to money, so let’s look at the club’s finances to try to understand how these have contributed to Lyon’s issues.

It’s not a simple case of “cause and effect”, but more of Lyon being stuck in a vicious cycle, albeit most of it is of the club’s own making.