Crystal Palace suffer huge Europa League blow as Lyon relegation overturned | OneFootball

Crystal Palace have suffered a fresh blow in their hopes of playing Europa League football next season, with Lyon’s relegation from Ligue 1 being overturned on appeal.

Palace earned a Europa League spot by winning the FA Cup but face the threat of expulsion from the competition because outgoing co-owner John Textor also owns a majority stake in Lyon. Uefa rules prohibit individual or legal entities having control or influence over more than one club participating in the same competition.

Textor, who owns 77 per cent of the French side Lyon, recently sold his 42.9 per cent stake in Palace to New York Jets owner Woody Johnson in a deal thought to be worth almost £190m, to try and aid the case that he does not have “decisive influence” on the club.

The Eagles had been given an apparent reprieve when Lyon were relegated to Ligue 2 due to financial difficulties by French football's financial regulator, the DNCG. Lyon are given precedence over Palace for the Europa League spot due to finishing higher in their domestic league, something no longer true after demotion.

But that relegation has now been overturned on appeal, with Lyon restored to Ligue 1 and the French Football Federation imposing a framework for the wage bill and transfer fees in the club's proposed 2025/2026 Ligue 1 budget.

A statement on behalf of Lyon read: “Olympique Lyonnais welcomes today’s decision from the DNCG which restores our position in Ligue 1 and is grateful that the Appeal Commission recognises the ambition of the club’s new management to ensure a professionalised administration of its affairs going forward.

“The new management, aided by the commitment and dedication of our shareholders and lenders, is extremely grateful for all the support it has received from inside and outside the club, including from fans, staff, players, partners and elected officials.

“Today’s decision is the first step in restoring confidence in Olympique Lyonnais and we now return our focus to creating success on the pitch, ready for next season.”

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John Textor’s stake in Crystal Palace is the key fact upon which this whole situation hinges (Getty Images)

In addition to selling his stake in Crystal Palace, Textor also stepped down as a president and board member of Lyon, though both of these moves came after the 1 March deadline that teams are required to meet in order to be compliant with Uefa’s multi-club ownership rules.

Women's football mogul Michele Kang, who owns Lyon's women's team OL Lyonnes, has been appointed president of Olympique Lyonnais, replacing Textor.

Palace’s spot in the Europa League now hangs in the balance with Uefa having waited for the outcome of Lyon’s relegation appeal before making a ruling.

If Uefa rule against Palace, it could mean they are demoted to the Europa Conference League, with Nottingham Forest taking their place in the Europa League.