Olympique Lyonnais was, initially, formed under the multisports club Lyon Olympique Universitaire, who was originally formed in 1896 as Racing Club de Lyon. In 1899, Lyon Olympique formed a football section. In the early years of the club, the football section was often overshadowed by local rivals FC Lyon, who won the French championship in the both the 1908 and 1909 seasons. Both LOU and FC Lyon also shared rivalries with local clubs CS Terreaux and AS Lyonnaise. In 1910, Lyon Olympique won the French Championship eclipsing their rivals. By 1917, the city of Lyon was divided with its citizens supporting only one of the four clubs.
By 1945, Lyon Olympique were managed by Félix Louot, who provided the leadership, determination, and faith in order to create professional football in the city of Lyon. His principles helped the club win the southern pool of the final wartime championship by two points over Bordeaux. In the national final, which pitted them against Rouen, Lyon Olympique lost the match 0–4. These successes propelled the club to the first division, but also led to problems regarding the cohabitation of amateurs and professionals within Lyon Olympique Universitaire. Due to numerous disagreements, Louot and his entourage began to contemplate forming their own club.
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