Lyon will play in the second tier of French football next season after their demotion was confirmed following a meeting with the National Management Control Directorate (DNCG). 

The French giants, along with several other Ligue 1 sides, appeared before the DNCG on Tuesday to discuss the financial state of their respective clubs. 

Lyon were hit with a provisional demotion to Ligue 2 back in November amid concerns about their finances, having reportedly racked up over €500m in debt. 

Eagle Football Group, the consortium that owns Lyon, pulled multiple financial levers to try and convince the DNCG that their financial situation had improved. 

That included chairman John Textor selling his 42.9% stake in Premier League side Crystal Palace, as well as selling off Lyon's women's team for a reported £190m. 

Seven-time French champions Lyon also raised around £45m with the sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June. 

But despite those efforts, they were unable to convince the DNCG. 

L'OL rétrogradé en Ligue 2 par la DNCG > https://t.co/QLTRIU3MVo pic.twitter.com/BqLaoaPFq2

— L'Équipe (@lequipe) June 24, 2025

High earners such as Alexandre Lacazette and Anthony Lopes have also been released.

Lyon have the right to appeal against the decision.

Should it stand, Lyon will be replaced in the top flight by Reims, who were beaten in the relegation play-off by Metz.