Lyon RELEGATED as league bosses drop bombshell and Crystal Palace await decision

French football chiefs have decided to demote seven-time champions League from Ligue 1 after an audit of their finances, with the company of owner John Textor reporting to have debts of around £422m

Seven-time French champions Lyon were sensationally relegated to Ligue 2 on Tuesday night after failing to provide financial guarantees to the game’s watchdog.

Lyon are one of the biggest clubs in France and have been in the top flight of French football since 1989/90, but as things stand they will be plying their trade in the second tier following an audit of their finances. The club have already confirmed they will immediately appeal the decision.

The team, who finished sixth in Ligue 1 last season, were provisionally relegated by the National Directorate of Management Control (DNCG), who have now rubber-stamped that decision.

A statement from the club reads: “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.

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“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.”

The stunning decision comes just a day after Lyon owner John Textor sold his shares in Crystal Palace to New York Jets chief Woody Johnson – in an attempt to ensure the Premier League side take their place in the Europa League.

Palace’s place in the competition was at risk because Textor had shares in both Lyon and Palace – with the two teams set to enter the same tournament. However, it was understood that because the ownership change happened after the March 1 deadline it would have little impact on UEFA’s final decision.

Under previous rules, Lyon would have been given the place in the Europa League over Palace because they finished higher in their league (6th) than Palace managed (12th). But Lyon’s relegation – if fully ratified – could ultimately clear the path for the FA Cup winners.

Lyon’s perilous financial position also saw them sell star man Rayan Cherki to Manchester City for around £34million. Maxence Caqueret was also sold to Como in January, handing the club around £45m in total.

High earners Alexandre Lacazette and Anthony Lopes were also released in a bid to reduce their wage bill, but Lyon have still been penalised in one of the most brutal ways possible.

Textor had appeared confident the matter would be resolved ahead of a meeting with DNCG this week as he said: “You can see from the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA licensing process.

“Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably.”

But it was reported his company Eagle Football Group had racked up debts of around £422m and his efforts to make sales have not satisfied the DNCG.

While Textor’s prospect at Lyon look gloomy, his exit from Palace was confirmed on Monday. It was announced that US billionaire had purchased his stakes in the club.

It is understood that Johnson will be subjected to the same set-up at Palace as Textor was. Despite him owning 43 per cent of the club, he will only have a quarter of the voting rights with chairman Steve Parish and US investors Josh Harris and David Blitzer also having a say in the running of the Eagles.

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