In 2000, Gueugnon shocked French football supporters around the country after winning the Coupe de la Ligue. The club defeated the two-time champions of the competition Paris Saint-Germain 2–0 in the final. The victory resulted in Gueugnon becoming the first and only club to win the cup while playing in Ligue 2. The resulting success led to drastic consequences as many of the club's top players such as Sylvain Distin departed the club for better sporting and monetary opportunities. The following season, Gueugnon played the UEFA Cup but lost to Greek club Iraklis 1–0 on aggregate in the first round. After that season, the club hovered mid-table and just barely avoided relegation in 2004 with a 5–0 win over Lorient on the final match day of the season. The 2007–08 season proved disastrous with the club remaining blocked in the last position for most of the season. With only five wins overall, Gueugnon were relegated to third-tier National.