Goals from Hamza Rafia and Oumar Solet handed the French outfit all three points at the OL Training Center, sealing the hosts’ progression and condemning the Blues to a third defeat in Group F and ultimately, exit from the competition.
The Blues knew only a victory could keep our slim hopes of qualification alive but as they did in the home fixture, the visitors slumped to the worst possible start, conceding inside the first four minutes when Rafia curled into the bottom corner from the edge of the area.
Matters almost worsened on the ten-minute mark, as Melvin Bard struck the woodwork with a free-kick, finally sparking City into action.
As the Blues found a foothold in the game, Colin Rosler almost found an equaliser but was unfortunate to see his header fly over the crossbar from Taylor Richards’ excellent delivery.
The visitors struggled to mount consistent pressure on the home side, who looked the more threatening without really testing Curtis Anderson in the City goal.
Luke Bolton went in search of a leveller in the final moments of the opening 45, drilling into Malcolm Barcola’s arms, having collected Ian Poveda’s pass and turning well into space.
It proved the last major action of the half, leaving the Blues with a mountain to climb.
Eric Garcia perhaps should have clawed City back into the game but found Barcola once again in inspired form, and the visitors were punished five minutes later, as Lyon bagged a second just after the hour-mark.
It was Solet who sealed our fate, replicating Rafia's earlier goal with another long-range effort.
With City heads down, the French side smelled blood and almost added a third as Lenny Pintor attempted a chip over Anderson, but his shot had just too much power and landed on the roof of the net.
As both sides pressed for a goal – a killer for Lyon and consolation for City – Anderson thwarted Yaya Soumare, while Rosler fired wide, and the hosts cruised through to the knock-out stages.
What it means…
City miss out on qualification, having tallied just four points from five games.
Hoffenheim and Lyon progress with 11 and ten points, while Shakhtar Donetsk sit bottom of Group F with two.
How we lined up…
Anderson lined up in goal, shielded by a backline of Jeremie Frimpong, Garcia, captain Rosler and Nathaneal Ogbeta. Claudio Gomes operated in the centre of a midfield three, alongside Richards and Felix Nmecha, while Poveda, Bolton and Rabbi Matondo led a three-pronged attack.
The Blues return to domestic action with a Checkatrade Trophy trip to Barnsley on Tuesday 4 December (7:30pm) before travelling to Derby on Friday 7 December (7pm) in the Premier League 2.
We complete our UEFA Youth League campaign with the visit of Hoffenheim to the Academy Stadium on Wednesday 12 December (3pm).