Lyon have won their appeal to stay in Ligue 1 after being initially relegated over financial issues, dealing a major blow to Crystal Palace’s hopes of European football next season.
The French Football Federation overturned Lyon’s drop to Ligue 2 on Wednesday. The decision follows an urgent appeal and a revised financial plan presented by the club. Palace are now at risk of losing their Europa League place due to UEFA ownership rules.
Lyon were relegated by the DNCG, France’s financial watchdog, on June 24 due to debts amounting to €541 million. The club’s inflated wage bill and lack of cash flow sparked serious concern. To regain their top-flight status, Lyon had to secure €100 million immediately and guarantee another €100 million for the next two years.
A dramatic leadership shift followed. John Textor, who owns Lyon through the Eagle Football Group, was removed from his role as club president. Michele Kang, a prominent investor in Eagle Football, has taken control of operations at Lyon.
Textor’s links to Crystal Palace complicate matters. He also owns a stake in the Premier League club, and UEFA regulations prohibit multiple clubs under the same ownership from entering European competitions in the same season. Palace, who had qualified for the Europa League, must now convince UEFA that they operate independently from Lyon.
UEFA had made it clear that if Lyon were relegated, they could not play in Europe. But with Lyon now reinstated, the ownership conflict returns to the spotlight. Sources have said that a final decision from UEFA on Palace’s eligibility is expected soon.
