Lyon remains in Ligue 1: administrative demotion to Ligue 2 has been overturned

Lyon will play in Europa League next year, but the future of Crystal Palace is uncertain.
Text: Javier Escribano
Published 2025-07-09

Olympique Lyon has won the appeal against the DNGC, the organisation that oversees the accounts of football clubs in France, and will not be relegated to Ligue 2 next year. The shocking news, now overturned, was first announced at the end of June: due to their financial situation and their ineffective ways to improve them, they had been sanctioned with a direct relegation to Ligue 2, France's second division, despite Lyon finishing sixth in the league last season.

But a statement released today by the French Football Federation confirms that they have overturned the administrative demotion of the first team to Ligue 2 at the end of the 2024-2025 season.

Olympique Lyonnais, who went on to win seven leagues between 2002 and 2008, thanked the DNGG and the Appeals Committee on their own statement, "for recognizing the ambition of the Club's new management, determined to ensure serious management in the future".

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

What will happen with Crystal Palace in Europe now?

The decision means that Lyon will be able to play in Europa League next season. That has a domino effect involving several English clubs, but the most likely scenario is that Crystal Palace will not be taking Lyon's place at Europa League.

Lyon and Crystal Palace were both owned by Eagle Football Holdings, owned by John Textor, the American businessman who also owns Brazilian's Botafogo. Due to laws against multi-ownership of clubs, Crystal Palace was denied its place in Europa League, but the doors opened again with the potential disqualification of Lyon. But now that they have been admitted again, it is unclear what will happen. Textor, as a measure to clean up their accounts, has sold Crystal Palace, but the sale of his stakes is yet to be approved.

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