Lyon Avoids Relegation, Shakes Up Ligue 1 and Europa League Plans
Olympique Lyon has officially avoided relegation from Ligue 1 after winning an appeal against a financial-related demotion. The decision, finalized on July 9, 2025, reverses a prior ruling by the French football finance watchdog (DNCG), which had previously confirmed their drop to Ligue 2 due to concerns over the club’s financial health.
With this outcome, Lyon will remain in the French top flight for the 2025-26 season. The club expressed relief and optimism, emphasizing the commitment of its new management to long-term financial stability and a return to competitive form. The appeal decision is seen as a critical turning point for Lyon’s future planning.
Beyond Ligue 1, the ruling also impacts the European football landscape, particularly the UEFA Europa League. Lyon had agreed to forfeit their spot in European competition if the relegation was upheld. However, now that they stay in Ligue 1, this situation affects Crystal Palace, who had qualified for the Europa League after winning the FA Cup.
Palace’s participation is under review due to potential violations of UEFA’s multi-club ownership rules, as both they and Lyon are linked to Eagle Football Holdings, owned by John Textor. This could open the door for Nottingham Forest, who finished seventh in the Premier League, to step in and take Palace’s Europa League slot if UEFA enforces its ownership restrictions.
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