On 3 August 1950, Louot's plan came to fruition when Olympique Lyonnais was officially founded by Dr. Albert Trillat and numerous others. Due to the split, Lyon moved into the Stade de Gerland, a stadium designed by local architect Tony Garnier. The club's first manager was Oscar Heisserer and on 26 August, played its first official match defeating CA Paris-Charenton 3–0 in front of 3,000 supporters. In 1951, the club was crowned champions of the second division, thus moving up to the first division. Lyon were relegated back to the second division after just one season, despite Heisserer coming out of retirement as a player. Lyon spent the next two seasons in Division 2 building for the future by signing players such as Åke Hjalmarsson and Erik Kuld Jensen. Eventually, during the 1953–1954 season, the club achieved promotion back to the first division under the leadership of Heisserer, who departed the club after a four-year stint as manager. He was replaced by Julien Darui, who only managed the club in the first division for six months, before leaving his post. Lucien Troupel replaced him.
Troupel joined the club midway through the season, where Lyon ultimately finished in 12th position. Despite the inconsistent start, Troupel developed a squad full of talent, which included savvy veterans like Swiss international Jacques Fatton and Antoine Dalla Cieca, and young emerging talent in Jean Djorkaeff, Marcel Le Borgne, and Bernard Gardon. The team responded the following season finishing in the top half of the table and also reaching the semi-finals of the Coupe de France. Over the next three years (1956–1959), Lyon finished mid-table. In 1959, Troupel was replaced as manager by Gaby Robert. The arrival of a new manager included the arrival of an influx of new players with the Argentine Nestor Combin, Cameroonian striker Eugène N'Jo Léa, and Frenchman Jules Sbroglia being the biggest signings. Despite the signings, Lyon still struggled finishing in 16th position for the 1959–60 season.
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