Lyon stand to be replaced in Ligue 1 by Reims after getting into trouble over financial difficulties
Lyon and Crystal Palace John Textor
Lyon and Crystal Palace John Textor (AP)
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Crystal Palace’s European dream has taken a new twist after French giants Lyon were relegated to Ligue 2 for failing to convince authorities they have resolved their financial difficulties.
The seven-time French champions were hit with a provisional relegation back in November after racking up massive debts, and although they have since sold a number of first-team players, French football watchdog the DNCG upheld the relegation following meetings on Tuesday.
The decision was announced by the French Football League (LFP) on Tuesday evening. Monaco, Nantes and Paris FC will face no further action.
Although Lyon can still appeal against the ruling, the decision to relegate a club that won seven consecutive titles between 2001-02 and 2007-08, and reached the semi-finals of the Champions League as recently as 2020, will send shockwaves through French football.
The club’s president John Textor told L’Equipe last week he was confident the club's financial position had been resolved, having said back in November there was “no chance” the club would be relegated.
Textor is in the process of selling his shares in Premier League club Palace, who are at risk of being denied their place in the Europa League next season as Lyon have also qualified after finishing sixth in Ligue 1.
A sale to Woody Johnson, owner of the NFL’s New York Jets, has been agreed but the Premier League is yet to ratify the deal and Johnson must yet pass the Premier League's owners' and directors' test.
Lyon’s relegation would not have an impact on Palace’s position in the Europa League unless Uefa was to apply its own sanctions against the French club that led to exclusion from European competition. But Palace hope that Textor’s sale will be enough to secure their Europa place.
After receiving the provisional relegation last year, Lyon sold the likes of Said Benrahma, Anthony Lopes and Maxence Caqueret in January, and this summer they have already sold Rayan Cherki to Manchester City.
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A statement from Lyon read: "Olympique Lyonnais acknowledges the incomprehensible decision rendered by the DNCG tonight and confirms that it will immediately file an appeal.
"In recent months, we have worked closely with the DNCG, satisfying all of its requests with cash equity investments exceeding the amounts requested.
"Thanks to the equity contributions of our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025/26 season.
"With so much cash liquidity demonstrated, and sporting success which has earned European competition in two consecutive years, we sincerely do not understand how one administrative decision could relegate such a great French club.
"Through our appeal, we will establish our substantial cash resources as necessary for Olympique Lyonnais to keep its place in Ligue 1."
additional reporting by PA
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