Lyon avoids relegation to Ligue 2

Olympique Lyon have won their appeal against relegation and will remain in Ligue 1 for the 2025/26 season.

The French football financial watchdog, DNCG, had initially ruled that Lyon would be relegated to Ligue 2 over financial irregularities, citing the club’s significant debt estimated at over €500 million.

However, following a hearing in Paris on Wednesday, Lyon successfully presented a revised financial recovery plan, convincing the DNCG to overturn the decision.

This victory means Lyon will not only stay in France’s top flight but will also retain their place in next season’s UEFA Europa League, having finished sixth in the previous Ligue 1 campaign.

The decision, however, raises complications for English club Crystal Palace, who were poised to take Lyon’s Europa League slot if the relegation had stood. Both clubs are connected through ownership ties to American businessman John Textor, and UEFA’s multi-club ownership rules prohibit teams under the same ownership structure from competing in the same European competition.

A final decision on Palace’s eligibility in the Europa League is expected soon, as UEFA reviews whether Lyon’s ongoing sale of shares to New York Jets owner Woody Johnson resolves the conflict.