French club Lyon will remain in Ligue 1 next season after overturning a financial relegation, a decision that could cost Crystal Palace a spot in the UEFA Europa League.
Lyon will remain in Ligue 1 next season after successfully appealing a Direction Nationale du Contrôle de Gestion (DNCG) order to relegate the French football club.
Appearing before the French Football Federation on July 9, Lyon executives learned it will avoid relegation to Ligue 2 after the Federal Appeal Commission deemed the DNCG’s decision “invalidates the administrative relegation”.
As part of the club winning its appeal, Lyon’s finances, wage bill and transfer spend will be monitored throughout the 2025/26 season. This follows former CEO and majority owner John Textor stepping down from his role last week, being replaced by Michele Kang and Michael Gerlinger.
“Olympique Lyonnais welcomes the decision, made today by the DNCG, to keep the club in Ligue 1,” said Lyon in a statement.
“OL thanks the Appeals Committee for recognising the ambition of the new management of the club, determined to ensure serious management in the future. The new management, supported by the commitment and dedication of our shareholders and lenders, is extremely grateful for all the support received both inside and outside the club, especially from its supporters, collaborators, players, partners and elected officials.
“Today’s decision is the first step to restore confidence in Olympique Lyonnais. We can now focus our attention on sporting objectives, fully preparing for next season.”
The seven-time Ligue 1 winners were relegated to the second-tier of French football after amassing debts of up to $498m (€425m) and despite shortening this to $200m (€175m), the DNCG deemed the club’s finances had not improved since its preliminary warning in November 2024.
The club were swift to file an appeal to the Federal Appeal Commission, citing proof of funds of up to $70m (€60m), as well as its proactiveness to raise funds through the selling of players such as Rayan Cherki to Manchester City and Maxence Caqueret to Como.
Lyon were also on the verge of being removed from the UEFA Europa League if its appeal was unsuccessful, as well as being hit with a $12.5m (€10.8m) fine by UEFA for breaching its financial sustainability rules.
But now with Lyon reinstated to Ligue 1, the club will also retain its position in the Europa League, which now raises even greater questions regarding the status of Crystal Palace’s participation in the competition.
