Olympique Lyonnais, a seven-time Ligue 1 champion, has successfully appealed their relegation to Ligue 2, securing their place in France’s top football league for the 2025-26 season, the French Football Federation announced Wednesday.
The decision, following a hearing with the National Directorate of Management Control (DNCG), also confirms Lyon’s participation in the Europa League, where they qualified with a sixth-place finish last season.
However, this victory casts a shadow over Crystal Palace’s hopes of competing in their first-ever European campaign, as UEFA’s multi-club ownership rules threaten to exclude the FA Cup winners from the Europa League, potentially relegating them to the Conference League or out of European competition entirely.
Lyon’s relegation, initially imposed in June 2025 due to financial mismanagement and debts exceeding €400 million, was overturned after the club demonstrated improved liquidity through player sales, including Rayan Cherki to Manchester City for £34 million, and the sale of owner John Textor’s 43% stake in Crystal Palace to New York Jets owner Woody Johnson.
“Olympique Lyonnais welcomes today’s decision by the DNCG to keep the club in Ligue 1,” the club stated, thanking the appeals committee for recognising their new management’s ambition.
The ruling allows Lyon, led by new president Michele Kang, to focus on sporting objectives, but it complicates Crystal Palace’s European fate.
UEFA’s multi-club ownership regulations prohibit clubs under the same ownership from competing in the same European competition. Textor’s Eagle Football Holdings, which controls Lyon, held a significant stake in Palace until the recent sale, but the transfer missed UEFA’s March 1, 2025, deadline for ownership restructuring.
As a result, Lyon’s higher league finish (sixth in Ligue 1 versus Palace’s 12th in the Premier League) gives them precedence for the Europa League spot.
Fans suggest Palace could be demoted to the Conference League, with Nottingham Forest potentially leapfrogging into the Europa League if Palace is excluded.
Crystal Palace, who earned their Europa League spot by defeating Manchester City in the FA Cup final, face uncertainty as UEFA awaits further clarification.
The delay, announced on June 30, has frustrated Palace’s hierarchy, who argue they are unfairly penalised despite their financial stability compared to Lyon’s chaotic balance sheet.
BBC Sport reports Palace’s exasperation, noting their clean financial record and the irony of losing out to a club relegated for financial breaches.
The club is prepared to appeal to the Court of Arbitration for Sport (CAS) if UEFA rules against them, while Forest may also challenge if Palace retains their spot.
The decision, hailed as a “first step in restoring confidence” by Lyon, has reignited debates about multi-club ownership, with 105 top-flight European clubs now part of such structures.
As Palace awaits UEFA’s final verdict, expected before the August 4 Europa League playoff draw, the outcome could reshape their season and impact players like Eberechi Eze and Marc Guehi, who are attracting transfer interest amid the uncertainty.
