Palace see Europa League lifeline as Lyon face Ligue 2 relegation | OneFootball

Palace Edge Closer to Europa League Spot as Lyon Relegation Clears Path

Crystal Palace’s hopes of competing in the Europa League next season have received a major lift after Lyon, their ownership-linked counterparts in France, were relegated from Ligue 1 due to severe financial irregularities. The development, as reported by The Times, could have far-reaching implications for how UEFA enforces its increasingly scrutinised multi-club ownership (MCO) rules.

Lyon’s Fall Reshapes UEFA Landscape

The relegation of Lyon, formally announced by the DNCG (France’s National Committee for the Oversight and Financial Management of Clubs), effectively invalidates their sixth-place Ligue 1 finish. Consequently, they are no longer eligible for European football next season, removing the direct conflict with Palace in UEFA competition.

Photo: IMAGO

John Textor, the American entrepreneur whose Eagle Football Holdings owns 43 per cent of Crystal Palace and also held a controlling stake in Lyon, had agreed to sell his Palace interest to New York Jets owner Woody Johnson for £160 million. However, that change came after UEFA’s strict March 1 deadline, putting Palace in breach of eligibility rules regardless of intent or direction of travel.

Even as Textor sought to assure regulators — “Our liquidity situation has improved considerably,” he said — the wider structure and timing raised red flags for UEFA’s Club Financial Control Body (CFCB), who were set to rule on Palace’s status later this week.

UEFA’s Rules Leave Little Room for Movement

UEFA’s MCO rules are clear and unforgiving. “To ensure the integrity of the UEFA club competitions, the club must be able to prove that as at 1 March 2025 the… multi-club ownership criteria were met,” the regulations state. The recent precedent of Irish side Drogheda, excluded from the Conference League due to shared ownership with Danish club Silkeborg, underscored that the CFCB has little tolerance for even technical breaches.

A similar cloud hung over Palace, whose indirect connections to Danish side Brondby — via co-owner David Blitzer’s Global Football Holdings — could have presented another MCO headache, especially if both sides ended up in the Conference League. But the more immediate concern was the Lyon overlap, and that now appears to have been resolved.

Financial Turmoil Exposes MCO Fragility

Lyon’s own situation is illustrative of the growing tension between ambition and sustainability in European football. With reported debts of €175 million, Textor had attempted to alleviate the pressure with capital injections and by pointing to the imminent sale of Palace as a stabilising force. Yet the DNCG, applying Article 11 of its regulations, deemed the club’s finances too fragile and imposed relegation — a decision Lyon are now appealing.

It is worth noting that this is not a sporting relegation. Lyon’s league performance would have qualified them for Europe. Their drop to Ligue 2 is solely the result of financial governance failures, a reminder that the structures surrounding the game are every bit as decisive as what happens on the pitch.

Palace Await Official Confirmation

For Palace, the scenario now changes considerably. With Lyon removed from the equation, UEFA’s primary basis for concern may no longer exist. There are still procedural hoops to clear, and the official green light from UEFA has not yet been issued. But the situation looks considerably more favourable than it did just days ago.

Photo IMAGO

The difference between the Europa League and the Conference League is significant in prestige, visibility and financial rewards. Avoiding a demotion to the third-tier competition would be more than symbolic for Palace, particularly as they look to build momentum under their current project.

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For Crystal Palace fans, this feels like the most positive twist in what had been a deeply unsettling saga. The threat of missing out on the Europa League due to off-pitch technicalities, despite winning the FA Cup, had created a real sense of injustice among the Selhurst Park faithful.

Supporters had watched nervously as headlines broke about Textor’s multi-club model and Lyon’s financial implosion. The concern wasn’t just about UEFA’s strict March 1 rule, but also whether Palace were once again going to be collateral damage in football’s ever-expanding commercial jungle.

Now, there is a genuine sense of relief. Lyon’s relegation — while unfortunate for their supporters — could be the lucky break Palace needed. Without Lyon in European competition, UEFA has one less reason to scrutinise Palace’s ownership structure. And with Textor’s stake sold and Premier League approval pending, the path to a Europa League campaign looks clearer.

There will still be questions around the Brondby connection, but fans will take that one issue over two. Europe awaits, and for a club that has long hovered around mid-table mediocrity, the chance to play under the lights on Thursday nights feels like vindication.