Lyon relegation to Ligue 2 overturned | OneFootball

Lyon have won their appeal against relegation from Ligue 1, in a ruling that could have major implications for Crystal Palace’s chances of competing in next season’s Europa League.

The French club had been facing demotion to the second tier after France’s financial watchdog, the DNCG (Direction Nationale du Contrôle de Gestion), raised concerns over mounting debts - reportedly around €541 million - and an unsustainable wage bill.

However, following a hearing, Lyon have successfully overturned the decision after agreeing to operate under tighter financial constraints.

Their reinstatement in Ligue 1 also means they are set to retain their place in next season’s Europa League, having finished sixth in the French top flight - putting further pressure on UEFA’s decision over Palace’s European status.

What it means for Palace

Crystal Palace, who secured a Europa League berth by winning the FA Cup, are still awaiting confirmation from UEFA over their eligibility due to ongoing scrutiny regarding multi-club ownership rules.

John Textor, Lyon’s majority stakeholder, remains Palace’s largest individual shareholder, though he is in the process of selling his stake to Woody Johnson, owner of the NFL’s New York Jets. Johnso must pass the Premier League’s owners’ and directors’ test before the deal can be finalised - a process that is reportedly close to completion.

UEFA’s Club Financial Control Body (CFCB), which oversees compliance with multi-club ownership regulations, is expected to make a final ruling this week. According to UEFA rules, no individual or group with a "decisive influence" can control more than one club in the same competition.

That development could spell bad news for Palace. One scenario being discussed would see Palace moved to the Conference League instead, with Nottingham Forest  taking their Europa League spot. Palace, who have never played in a major European tournament, are expected to appeal to the Court of Arbitration for Sport (CAS) should they be blocked from the competition.

A final decision is expected in the coming days.