Crystal Palace will be kicked out of the Europa League if Lyon successfully appeal against their relegation from Ligue 1, The i Paper understands.
Uefa announced on Monday that it has postponed a decision on whether Palace would retain a Europa League place after winning the FA Cup.
In what has become a messy multi-club ownership situation, Crystal Palace were investigated by Uefa’s Club Financial Control Body (CFCB) due to American billionaire John Textor owning a controlling stake in them and French side Lyon, who also qualified for the Europa League.
Textor sold his 43 per cent stake in Palace to New York Jets owner Woody Johnson, for around £190m, in an attempt to rectify the situation. But it is thought that this was not enough to satisfy the CFCB, as Textor had not relinquished his stake by the 1 March deadline.
How did we get here?
(FILES) Olympique Lyonnais' (OL) US President John Textor looks on from the stands prior to the French L1 football match between AS Monaco and Olympique Lyonnais (OL) at the Louis II Stadium (Stade Louis II) in the Principality of Monaco on May 10, 2025. Former Lyon president Jean-Michel Aulas said on June 24, 2025, that the administrative demotion of Olympique Lyonnais by the DNCG was "a shock, a terrible blow for all those who love OL deeply", which he managed from June 1987 to December 2022. The club also announced on June 24, 2025, that they would "immediately" appeal against the DNCG's decision to demote them to L2, describing the decision by the financial watchdog of French professional football as "incomprehensible". (Photo by CLEMENT MAHOUDEAU / AFP) (Photo by CLEMENT MAHOUDEAU/AFP via Getty Images)
American billionaire John Textor has sold his stake in Palace (Photo: AFP)
Palace were playing Millwall in the Fifth Round of the FA Cup on the deadline, and were 12th in the Premier League, with minimal chance of qualifying for Europe.
Palace had also tried to argue, during questioning by the CFCB, that while Textor owned a controlling stake, his power was diluted due to the four-way voting requirement of the four owners, and that the club shared no resources with Lyon.
Uefa was due to announce its ruling on the matter by Friday last week, but the decision was further complicated and delayed after Lyon were relegated by the French authorities for breaching financial regulations.
Lyon have launched an appeal and Palace’s future in the Europa League hinges on the outcome.
When will Palace learn their fate?
If Lyon successfully overturn their relegation, the French club, who finished sixth in Ligue 1, will play in the Europa League and Palace will be forced to accept a place in the Europa Conference League instead.
Some well-placed sources believe Lyon’s appeal could be heard next week, but they are completely at the mercy of the French football authorities.
Either way, from Uefa’s perspective, the situation must be sorted by 4 August, when the draw for the Europa League playoffs will take place.
It is believed that if Lyon’s appeal has not been heard by the new deadline, the Europa League place will be handed to Crystal Palace.
What’s the latest with Lyon’s appeal?
Lyon were warned by the French football watchdog (the DNCG) in November 2024 that they were provisionally relegated after amassing debts of £200m.
Textor insisted, at the time, that Lyon would not be relegated, a stance he reiterated in an interview with French publication L’Equipe in the week before the relegation was confirmed.
After selling key players in January to raise funds, the club sold Rayan Cherki to Manchester City for £34m at the start of June, hoping it would appease the DNCG.
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But two weeks later the decision was upheld, throwing Uefa’s ability to rule on the case into chaos.
Lyon said in a statement that it was an “incomprehensible decision” after they had “worked closely” with the DNCG.
Textor, who also owns clubs in Brazil and Belgium, has since resigned from leadership positions at the French club, hinting that he might invest in another English club.