In a stunning development, seven-time French champions Olympique Lyonnais have been officially relegated to Ligue 2 following a decision by the French football financial watchdog, the DNCG. Despite efforts by club officials to reverse the ruling, the league’s financial authorities deemed Lyon’s current situation unsustainable for top-flight competition.
The decision comes after months of scrutiny into the club’s finances, with Lyon previously placed under provisional relegation back in November. On Tuesday, Lyon representatives, which include the owner John Textor, he failed to persuade the DNCG that the club had sufficiently stabilized its financial condition.
Eagle Football Group, which owns about 77% of Lyon shares and is headed by Textor, reported a debts of a total of £422 million as of last October, 2024. The club has since made a series of high-profile moves, including offloading players like Maxence Caqueret and Rayan Cherki and releasing top earners such as Alexandre Lacazette and Anthony Lopes. Still, the DNCG found the club’s financial overhaul insufficient.
In a statement following the decision, Lyon described the ruling as “incomprehensible” and confirmed their intention to appeal.
Lyon’s Drop Could Impact Crystal Palace’s Europa League Dreams
Lyon’s relegation casts a shadow over Crystal Palace’s hopes of playing in the UEFA Europa League next season. Under UEFA’s multi-club ownership rules, two clubs controlled by the same entity are not allowed to participate in the same European competition.
Although Textor struck a deal to sell his 43.9% share in Crystal Palace earlier this week, the transaction is still pending. As a result, UEFA has yet to finalize a decision on Palace’s eligibility.
Palace earned a Europa League spot by winning the FA Cup, while Lyon also qualified by finishing sixth in Ligue 1. According to UEFA regulations, the higher-placed club in such ownership conflicts would typically retain the European spot. However, Lyon’s demotion throws that hierarchy into question.
If the relegation is upheld and Lyon’s sixth-place finish is invalidated, Palace could see their European status secured. But as of Tuesday night, officials at the South London club were still awaiting formal clarification.
Lyon’s Fight to Stay Up Continues
Lyon’s case is far from over. The club has already announced plans to appeal, and their statement insists they now possess the financial strength to remain in Ligue 1.
“Thanks to capital injections from our shareholders and the sale of Crystal Palace, our cash flow has significantly improved and we now have more than sufficient financial resources for the 2025-26 season,” the club’s statement read.
Despite their optimism, Lyon must now navigate a formal appeal process. If that fails, they could potentially take the matter to higher legal bodies, which include French administrative courts or even the Court of Arbitration for Sport (CAS).
Their demotion would mean Stade de Reims, who were relegated after losing a playoff to Metz, could be offered a lifeline and reinstated into the top flight for the 2025-26 season.
The Bigger Picture for French Football
Lyon’s relegation marks a vital chapter in French football history. Only five clubs have more Ligue 1 titles than Lyon, which dominated the league with seven consecutive titles from 2002 to 2008. The club also reached the UEFA Champions League semi-finals as recently as 2020 and has not played outside France’s top division since 1989.
The last time a big French club had a similar punishment was in 2023, that was when Bordeaux were relegated from Ligue 2 to the fourth tier due to financial challenges, and they later lost their professional status.
This development shows the growing pressure for French clubs to maintain financial discipline. The DNCG continues to play an important role in enforcing regulations to ensure long-term sustainability within the French domestic game.
What It Means for Palace, UEFA, and Nottingham Forest
Palace officials remain cautiously optimistic but are aware that Lyon’s appeal could stretch into the new season, leaving their European future in limbo. The club maintains that Textor has no active control at Selhurst Park, but UEFA’s multi-club rules don’t solely rely on operational control—they also examine ownership stakes and influence.
Should Lyon’s relegation be confirmed, UEFA would likely validate Palace’s European spot. But if Lyon wins their appeal or even delay the final decision, Palace may face a drawn-out process.
Another Premier League side, Nottingham Forest, is monitoring the situation closely, and If Palace is ruled ineligible, then the Forest team could step in to claim the Europa League spot. With the start of European qualifiers looming, all three clubs await a verdict that could define their upcoming seasons.
The Road Ahead
As Lyon prepares for a legal fight and Palace awaits UEFA’s call, the coming weeks could reshape the early part of the 2025-26 European football landscape.
For Lyon, it’s about proving financial recovery in a short time. For Palace, it’s about gaining clarity and capitalizing on their recent success. And for fans, it’s another reminder that football success today depends just as much on boardroom decisions as it does on results on the pitch.
Source: BBC
See also:
Lyon Relegated to Ligue 2 Over Financial Issues – Club Vows to Appeal Decision
Lyon Relegated to Ligue 2 After Financial Review by DNCG
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