The surprise relegation of Olympique Lyonnais to France’s second tier due to financial irregularities has sent shockwaves across European football, casting uncertainty over who will claim a Europa League spot next season.
While Lyon prepare their legal appeal, clubs like Crystal Palace are left in suspense, hoping the ruling could unlock a path to continental competition.
The decision by France’s financial watchdog, the DNCG, comes after Lyon failed to sufficiently improve their financial health, despite raising over £45 million through player sales and cutting wage bills.
The ruling not only drops a historic club, winners of seven straight Ligue 1 titles between 2002 and 2008\into Ligue 2 for the first time since 1989, but also threatens to impact UEFA’s multi-club ownership regulations.
Lyon’s American owner John Textor, who also owns stakes in Crystal Palace and Brazil’s Botafogo, had insisted his club’s finances were recovering and that relegation was “out of the question.”
However, the DNCG found otherwise, and the implications extend beyond France. With both Lyon and Palace having qualified for the Europa League, UEFA rules prohibit clubs under the same ownership from competing in the same European tournament.
Though Textor announced plans this week to sell his 43% stake in Palace to New York Jets owner Woody Johnson, the deal hasn’t closed and UEFA could still view the current arrangement as a breach. If Lyon’s sixth-place Ligue 1 finish stands, they would take the Europa League slot ahead of Palace, who qualified by winning the FA Cup.
However, Lyon’s enforced relegation may nullify their qualification entirely. If that’s the case, Palace could retain their spot. But even that outcome depends on whether Lyon’s appeal is successful or delayed. The French club insists the decision is “incomprehensible” and vows to fight it all the way through the French and European legal systems if necessary.
