PSG reach Champions League final as French football faces crisis

While PSG chase European glory, Ligue 1 struggles with financial instability and poor continental performance.

Paris Saint-Germain (PSG) supporters light flares and fireworks while blocking the highway near Parc des Princes Stadium in Paris on May 7, 2025. Photo by Geoffroy Van der Hasselt/AFP

By Randy Ahmad and Widya Putri

Paris Saint-Germain's qualification for the Champions League final should represent a moment of national pride. However, as PSG reach Champions League final, their triumph highlights a growing disparity between the capital club and the rest of French football. Beneath the celebrations, France’s top domestic league is battling serious financial, competitive, and reputational issues.

The 2024-25 Ligue 1 season came to a quiet end this weekend, with PSG already having secured a fourth consecutive league title weeks earlier. Under the leadership of Luis Enrique, the Parisians have not only dominated the domestic landscape but are now on the verge of a historic European breakthrough.

The club will compete for their first-ever Champions League trophy on May 31, facing Italian giants Inter Milan. But even if PSG reach Champions League final glory, French football’s broader problems remain unresolved.

Domestic dominance hides deeper issues

PSG’s monopoly in Ligue 1 has become so predictable that their league victories are no longer newsworthy. What matters now is their pursuit of European trophies. With the French Cup final approaching next Saturday, Luis Enrique’s side is on the verge of a domestic double – a prelude to their Champions League climax.

While France is a world footballing power, having won the World Cup twice and reached four finals since 1998, its clubs rarely echo that success in Europe. Since Olympique de Marseille won the inaugural Champions League in 1993, no other French team has lifted the trophy.

PSG in the Champions League final represents just the second time a French club has reached that stage in over three decades. It’s a sobering statistic for a country that produces top talent but lacks clubs with the financial muscle and structure to consistently compete on the European stage.

Lyon’s downfall and warning signs

The financial state of some of France’s biggest clubs is alarming. Lyon, a club with seven Ligue 1 titles, is in dire straits. Owned by Eagle Football, under American businessman John Textor, Lyon reported debts of €540 million ($603 million), a figure that casts doubt on their long-term sustainability.

Their failure to qualify for next season’s Champions League has only deepened their crisis. Recently, they were warned they could be relegated to Ligue 2 if they failed to reduce their debts substantially.

According to L’Équipe, Lyon will also have to accept UEFA-imposed sanctions to be allowed into any European competition next season. It's a stunning fall for a club that once symbolized financial prudence and youth development in French football.

Fragile financial foundations of Ligue 1

Beyond individual clubs, the entire Ligue 1 ecosystem is under pressure. The most glaring issue lies in the domestic television rights deal. Last season, a last-minute agreement with DAZN gave the league €400 million per year—well short of its ambitious €1 billion target.

Even when combined with international broadcasting revenues, Ligue 1 remains far behind other major leagues. For context, the English Premier League’s new domestic TV deal is worth over €2 billion per season.

What’s worse, the DAZN deal is now expected to be terminated early. The French league is scrambling to launch its own broadcasting channel, but this comes with immense risks. Without guaranteed income from television, clubs cannot plan budgets, invest in players, or develop infrastructure confidently.

The lonely road to European excellence

When PSG reach Champions League final, they carry the hopes of an entire footballing nation. But the excitement of the final cannot cover up the realities faced by their rivals. Clubs like Marseille and Monaco have reached European semi-finals in recent years, but consistency is lacking.

Marseille coach Roberto De Zerbi recently voiced the challenges of competing with a superclub like PSG:
“PSG have invested a lot of money and are years ahead of us in so many respects. But our ambition is still to be able to compete with them,” he said.

This gap is only expected to widen. PSG, backed by Qatari owners, are about to head to the Club World Cup in the United States, where winners will receive up to $125 million in prize money. That kind of financial windfall is simply out of reach for other French clubs.

Despite this, unity exists in the French football community—at least momentarily. Nice coach Franck Haise summed it up best:
“We are lucky to have a French team in the final. I’m not a Paris supporter. My club is Nice, but I am eager to see Paris win the final. I am French, as I was when Marseille won in 1993.”

A growing chasm between PSG and the rest

The sentiment of unity masks deeper frustrations. PSG’s unchecked dominance has created a competitive imbalance in Ligue 1. Clubs that once vied for titles are now scrambling for European spots, struggling under the weight of financial instability and shrinking revenues.

While PSG march toward what could be their greatest triumph yet, their rise has done little to lift the league. The structural issues in French football—lack of competitive balance, underwhelming TV deals, and club mismanagement—continue to hinder long-term growth.

The gap between PSG and the rest is no longer just financial. It’s now cultural, aspirational, and strategic. PSG are operating on a global scale, while most French clubs are fighting for local survival.

What’s next for Ligue 1?

If PSG reach Champions League final glory, it might offer a brief boost to Ligue 1’s reputation. But the real work lies in reforming the league’s financial structure, stabilizing clubs like Lyon, and securing a long-term, lucrative TV rights strategy.

Only with these changes can French football hope to capitalize on its talent pool and regain respect in Europe. Without them, PSG will remain the lone beacon in a struggling league, celebrated for its global achievements but isolated within its own country.

As the final whistle nears in Paris' pursuit of the ultimate European title, the rest of French football must decide how to catch up—before the gap becomes irreversible.