Crystal Palace face new Europa League fear as Lyon's relegation from Ligue 1 overturned

Lyon's relegation from Ligue 1 has been officially overturned, spelling danger for Crystal Palace's prospects of playing in next season's Europa League.

Last month, France's Direction Nationale du Controle de Gestion (DNCG) announced that the seven-time top-flight champions had been demoted to the second tier after a provisional relegation was upheld.

Lyon were originally sent down to Ligue 2 in late 2024 due to serious financial mismanagement, which had supposedly left the club saddled with debts of over £400m and facing a desperate need to raise funds through sales.

Les Gones offloaded a handful of star names over the past 12 months, most notably Rayan Cherki, Gift Orban and Said Benrahma, while former president John Textor resigned from his position on the board and ceded control to Michele Kang.

Those measures did not satisfy the DNCG originally, but following an appeal and a meeting with the relevant committee on Wednesday, Lyon have managed to retain their top-flight status.

"Olympique Lyonnais welcomes today's decision by the DNCG to keep the Club in Ligue 1. OL thanks the Appeals Committee for recognizing the ambition of the Club's new management, determined to ensure serious management in the future," a club statement read.

Crystal Palace handed Europa League fear as Lyon relegation overturned

"The new management, supported by the commitment and dedication of our shareholders and lenders, is extremely grateful for all the support received both within and outside the Club, including from its supporters, employees, players, partners and elected officials.

"Today's decision is the first step in restoring confidence in Olympique Lyonnais. We can now focus our attention on our sporting objectives and fully prepare for next season."

Had Lyon's demotion to the second tier been upheld, their place in the 2025-26 Europa League would have been under serious threat, but Les Gones are now expected to compete in the tournament next term.

The ruling may have severe consequences for Crystal Palace, who have been fighting a lengthy fight to also keep the Europa League spot they won by triumphing in last season's FA Cup final over Manchester City.

Palace co-owner John Textor is also the owner of the Eagle Football Group which oversees Lyon, and UEFA rules stipulate that two clubs under the same ownership cannot compete in the same competition.

The American agreed to sell his shares in Crystal Palace to Woody Johnson last month, but the deadline for Palace to alter their ownership structure in line with UEFA regulations was March.

The Eagles now face an even more nervous wait to learn the outcome of UEFA's ruling, but any prospective decision to kick them out of the Europa League will likely be met with an appeal of their own.

Written by
Ben Knapton