Reprieve in Lyon: DNCG Ruling Keeps Olympique Lyonnais in Ligue 1
- Southerton Business Times
- 4 days ago
- 2 min read
Olympique Lyonnais have officially been cleared to remain in Ligue 1 after a tense and closely watched review by France’s financial football authority, the DNCG (Direction Nationale du Contrôle de Gestion). The announcement, made late Tuesday evening, brings welcome relief for fans, players, and stakeholders following months of speculation surrounding the club’s financial health.
The situation escalated earlier this year when the DNCG flagged Lyon’s staggering debt—estimated at nearly €500 million—as a breach of French football's fiscal governance. Despite finishing sixth in Ligue 1 and qualifying for the UEFA Europa League, the club was initially handed a shock administrative relegation in June 2025.
From Crisis to Clearance Club owner John Textor, via Eagle Football Holdings, launched a full-scale rescue campaign. This included offloading his stake in Crystal Palace to resolve UEFA’s multi-club ownership concerns, and selling key players such as Rayan Cherki to raise funds. Yet these moves initially failed to convince regulators.
The game-changer came with a revised financial submission spearheaded by Michele Kang—an American tech entrepreneur and now chair of Eagle Football Group. Kang’s plan introduced strict budget controls, salary caps, and a long-term debt-reduction strategy. According to the DNCG, the club provided “satisfactory guarantees of future solvency and restructured oversight.”
Kang, in a public statement Wednesday, said:
“We are committed to restoring the financial integrity of Lyon while building a sustainable future for this iconic club.”
Reactions Across France The news was met with jubilation among supporters. Many had feared Lyon’s forced drop would tarnish the integrity of Ligue 1 and hurt France’s competitive standing in Europe. Lyon will now rejoin AS Monaco and Stade Rennais in the 2025–2026 UEFA Europa League campaign.
Still, experts warn the reprieve should not be mistaken for a full pardon.
“Lyon were nearly punished for playing the global football investment game the way everyone else is playing it,” said Thierry Chevalier, former French Football Federation administrator. “But this ruling signals a second chance, not a clean slate.”
Strict Conditions, Tight Margins The DNCG’s reversal includes conditions:
Mandatory salary caps
Monitored transfer activities
Spending linked to performance and revenue
Quarterly audits of club operations
With these restrictions, Lyon will need to pivot toward youth development and cost-efficient squad building.
Manager Bruno Génésio, who returned to the helm in May, now faces a pivotal season. The departure of key players such as Rayan Cherki and Thiago Mendes has left gaps in the squad. Expectations remain high both domestically and in Europe.
“It’s a fresh page,” Génésio told Canal+. “We’ve avoided the worst, now it’s time to fight.”
Looking Ahead: Financial Reform Across Ligue 1 The Lyon episode has also reignited conversations about the financial fragility of French clubs. Overreliance on investor capital, bloated wage bills, and multi-club ownership entanglements are all drawing scrutiny.
Analysts believe Lyon’s near-relegation may serve as a cautionary tale—and a catalyst for deeper financial reform across Ligue 1.
Despite the uncertainty, fans are rallying. Ticket sales for the club’s opening match have surged, and UEFA’s greenlight for Europa League participation promises a shot at redemption.