Lyon Win Relegation Reprieve, Throwing Crystal Palace’s European Hopes into Doubt

Olympique Lyonnais has secured a dramatic last-minute stay in France’s top flight after successfully appealing its administrative relegation to Ligue 2, the French Football Federation confirmed on Wednesday. The decision overturns a June ruling by financial watchdog DNCG, which had demoted the historic club over crippling debts exceeding €500 million and unsustainable wage bills.

Lyon’s survival hinged on a sweeping financial overhaul. The club presented a €200 million rescue package—half immediately available and half held in reserve—alongside asset sales, including Rayan Cherki’s €40 million transfer to Manchester City. Leadership changes were equally critical: majority owner John Textor stepped down as president, replaced by Michele Kang, owner of Lyon’s women’s team, who pledged “serious, responsible management.”

While Lyon celebrated its reinstatement to Ligue 1 and reclaimed its Europa League spot, the ruling ignited uncertainty for England’s Crystal Palace. Palace, which qualified for the Europa League by winning the FA Cup, now faces exclusion due to UEFA’s strict multi-club ownership rules. Textor retains a 44% stake in both clubs, violating regulations that bar shared ownership in the same competition.

UEFA had postponed a decision on Palace’s eligibility pending Lyon’s appeal. Textor has agreed to sell his Palace shares to New York Jets owner Woody Johnson, but the deal requires Premier League approval of Johnson’s ownership credentials. If the sale isn’t ratified by UEFA’s imminent deadline, Palace risks demotion to the Europa Conference League, with Nottingham Forest taking its Europa League place.

Lyon’s statement hailed the DNCG’s reversal as recognition of its “new management’s ambition,” though the club remains under strict financial controls, including wage caps and a €12.5 million UEFA fine. For Palace, the clock is ticking to resolve ownership ties—or risk seeing its European dream unravel over a crisis born 300 miles away in Lyon.