PARIS, France, June 25, 2025 – French membership Lyon have been demoted to Ligue 2 due to the poor state of their funds.
The membership had been provisionally demoted by the DNGC, the physique which oversees the accounts of French skilled soccer golf equipment, in November.
Lyon officers together with proprietor John Textor, met with the DNGC on Tuesday however did not persuade the physique that the membership had sufficiently improved their monetary state of affairs to elevate the punishment.
Last October, his Eagle Football Group,which owns a 77% stake in Lyon, introduced money owed of £422m.
In a press release, Lyon mentioned the DNGC’s determination was “incomprehensible” and confirmed they’d enchantment.
Lyon’s relegation may show important to Crystal Palace’s hopes of enjoying within the Europa League subsequent season.
Their participation is at present unsure due to Uefa guidelines, which stop a number of groups beneath one multi-club possession construction competing in the identical European competitors.
Textor owns stakes in each golf equipment though he agreed a deal to sell his 43% share in Palace on Monday.
Lyon baffled by determination
“With confirmed funds and sporting success that has earned us a spot in European competitors for 2 consecutive years, we sincerely don’t perceive how an administrative determination may relegate such a significant French membership,” Lyon’s assertion mentioned.
“We will enchantment to show our skill to supply the mandatory monetary assets to ensure OL’s place in Ligue 1.”
Seven-time French champions Lyon raised round £45m with the gross sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June in an try to enhance their funds.
High earners corresponding to Alexandre Lacazette and Anthony Lopes have additionally been launched.
Lyon have the correct to enchantment in opposition to the choice. Should it stand, Lyon can be changed within the high flight by Reims, who had been overwhelmed within the relegation play-off by Metz.
Only 5 groups have lifted extra French titles than Lyon’s seven, which they gained in successive seasons between 2002 and 2008.
The membership reached the Champions League semi-finals as just lately as 2020 and haven’t performed within the second tier since 1989.
When the provisional punishment was handed down in November, Textor mentioned that there was “no likelihood” the membership can be relegated and reiterated his confidence earlier than Tuesday’s assembly.
“We have made a wide range of investments in latest weeks,” he mentioned. “Everything is sweet financially.”
Textor can also be the most important shareholder of Brazilian membership Botafogo and at present co-owner of Palace till his deal to promote his stake to New York Jets proprietor Woody Johnson is accomplished.
“Over the previous few months, we’ve labored carefully with the DNCG, fulfilling all of its requests with fairness investments that exceeded the required quantities,” Lyon’s assertion continued.
“Thanks to capital injections from our shareholders and the sale of Crystal Palace, our money movement has considerably improved and we now have greater than adequate monetary assets for the 2025-26 season.”
Palace certified for the Europa League by successful the FA Cup however Lyon additionally certified by ending sixth in Ligue 1. The French facet’s increased league end means they’d take a European spot at Palace’s expense – ought to Uefa determine their multi-club possession guidelines are being breached.
Last 12 months, six-time Ligue 1 champions Bordeaux needed to surrender their professional status after being relegated from Ligue 2 to the French fourth tier due to chapter.
What may it imply for Palace’s European hopes?
Sami Mokbel
Senior soccer correspondent
There stays an air of warning at Palace regardless of the numerous information of Lyon’s enforced relegation.
Uefa guidelines state that two golf equipment beneath important management of the identical individual or entity can’t compete in the identical competitors and that the staff with the very best league end – Lyon – takes the spot in that respective European competitors.
The Premier League facet have insisted to Uefa that Textor has no management in any respect at Selhurst Park, regardless of the American businessman’s firm Eagle Football Holdings having a 43.9% stake.
The information that Lyon have been relegated has raised hope at Palace that the difficulty will disappear as a result of the French facet, in line with sources, will lose final season’s sixth-place end.
As of Tuesday night time, Palace had been nonetheless awaiting full clarification on what Lyon’s relegation means for his or her European hopes.
But even when the French soccer authorities confirm that Lyon’s sixth-place end has now been expunged, Palace should await a last determination earlier than they’ll plan their first enterprise into European soccer.
Lyon have already confirmed that they intend to enchantment the choice.
There are considerations on the south London membership that even when Lyon fail of their enchantment with the French league, they’ll take their struggle even additional – thus prolonging the agony.
Can Textor and Lyon persuade the authorities that they’re rectifying their poor monetary state sufficient to elevate their relegation?
And can Lyon have their punishment delayed till the appeals processes are full?
These are questions Palace are more likely to be asking themselves.
Then there’s the matter of Nottingham Forest, who stand to realize if Palace lose their Europa League standing, and their response to Palace preserving their place in Uefa’s second most prestigious competitors.
There was hope that Palace would have readability over their European future by the tip of this week. They could now have to attend for much longer.
