Lyon reinstated to Ligue 1 after successful appeal as Crystal Palace left sweating on Europa League spot

Lyon were relegated to Ligue 2 in June after racking up massive debts but have won an appeal against their demotion.

The French Football Federation confirmed the decision had been overturned in a statement on Wednesday that read: "The decision of the Federal Appeal Commission of the DNCG, meeting on Thursday, July 9, 2025 at the headquarters of the FFF. Decision: overturns the administrative demotion of the first team to Ligue 2 at the end of the 2024-2025 season, supervision of the payroll and transfer compensation on the proposed 2025-2026 Ligue 1 budget."

The club said in a statement: "Olympique Lyonnais welcomes the decision, made today by the DNCG, to keep the Club in Ligue 1. OL thanks the Appeals Committee for recognising the ambition of the new management of the Club, determined to ensure serious management in the future. The new management, supported by the commitment and dedication of our shareholders and lenders, is extremely grateful for all the support received both inside and outside the Club, especially from its supporters, collaborators, players, partners and elected officials. Today's decision is the first step to restore confidence in Olympique Lyonnais. We can now focus our attention on sporting objectives, fully preparing for next season.”

The decision will have ramifications outside France and will affect Crystal Palace. The Eagles had been hoping to play in the Europa League after winning the FA Cup last season but Lyon are now expected to keep their place in the competition at Palace's expense. Oliver Glasner's side could then be in breach of Uefa's multi-club ownership rules, in relation to co-owner John Textor's involvement in both clubs, and barred from the tournament.

UEFA must now rule on how to proceed and Palace will be sweating on the decision. The Eagles could be demoted to the Europa Conference League and will reportedly opt to take legal action if they are removed from the Europa League.