OFFICIAL: Lyon reinstated back to Ligue 1 after winning appeal against relegation

Suraj Radia
Suraj Radia
  • Updated: 9 Jul 2025 15:10 BST
  • 4 min read
John Textor, Lyon
© IMAGO

Lyon have been reinstated to Ligue 1 with a limitation on their transfer compensation and payroll after a successful appeal against their relegation to Ligue 2.

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The historic French side were stunned after being relegated due to a poor financial situation, having had mounting debts of more than €175 million.

The DNCG, the financial watchdog for French football, overturned the decision at the first instance and will now be allowed to compete in the Europa League next season in a decision that could affect Crystal Palace’s position in the competition.

A statement on the club’s website read: "Olympique Lyonnais welcomes today's decision by the DNCG to keep the Club in Ligue 1. OL thanks the Appeals Committee for recognizing the ambition of the Club's new management, 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, including from its supporters, employees, players, partners, and elected officials.

“Today's decision is the first step in restoring confidence in Olympique Lyonnais. We can now focus our attention on our sporting objectives, fully preparing for next season."

Crystal Palace set to miss out on Europa League

John Textor, the American billionaire who is an investor in Lyon, resigned from his post at the club last week and the French side’s new CEO, Michael Gerlinger, met the DNCG appeal committee this Wednesday in Paris.

However, with Textor still yet to sell his shares in Lyon or Palace, the Premier League side may miss out on the Europa League next season despite their qualification due to UEFA’s rules on multi-club ownership.

Oliver Glasner may see his Crystal Palace team miss out on European football despite winning the FA Cup.
© IMAGO - Oliver Glasner may see his Crystal Palace team miss out on European football despite winning the FA Cup.

Palace have protested that Textor does not have any controlling power at the club and that he has agreed to sell his shares to New York Jets owner Woody Johnson.

But, having missed the March deadline to change their structure, Palace will now be left with a nervy wait in light of Lyon now being able to breathe a sigh of relief as they continue in France’s top flight.

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