Lyon saga far from over, with another twist possible following relegation: report

Lyon star Ernest Nuamah looks on after his side were dumped out of the French Cup by fifth-tier side Bourgoin-Jallieu
Lyon star Ernest Nuamah looks on after his side were dumped out of the French Cup by fifth-tier side Bourgoin-Jallieu (Image credit: Getty Images)

Lyon have been relegated to Ligue 2 in one of French football's darkest days.

The seven-time French champions were banished to the second division, despite finishing 6th in Ligue 1 this season, after failing to convince authorities they have resolved their financial difficulties.

Managed by Paulo Fonseca, Lyon have informed the French footballing authorities they will appeal the decision, but yet another twist could lie in wait for one team in the Premier League along the way.

Why Lyon's relegation to Ligue 2 could yet have an effect on one Premier League side

General view inside Lyon's stadium ahead of a Women's Champions League game against Roma in November 2024.

General view inside Groupama Stadium - Lyon's home since 2016 (Image credit: Getty Images)

Lyon are owned by John Textor, who, up until earlier this week, also owned Crystal Palace. But after an announcement made on June 23, the 59-year-old declared he had sold his stake in the Eagles to New York Jets owner Woody Johnson.

Problems arose after both teams, Lyon and Palace, had qualified for the Europa League next season. UEFA rules prevent clubs in multi-club ownership models from playing in the same European competitions, as we saw with Manchester United and Nice's issue last year following INEOS' takeover.

Crystal Palace celebrate their 2025 FA Cup win

Crystal Palace celebrate their 2025 FA Cup win (Image credit: Getty Images)

However, there could yet be more drama, with a verdict on whether Lyon meets financial rules from the UEFA Club Financial Control Body (CFCB) set to arrive on Friday. This scheduled get-together could spell trouble for Crystal Palace and their Europa League dreams, with the final decision still unknown.

Textor told L'Equipe last week he was confident Lyon's financial position had been resolved, having said back in November there was "no chance" the club would be relegated. That proved to be wrong, with Lyon slapped with the sanction and a subsequent relegation.

After receiving the provisional relegation in 2024, Lyon sold Said Benrahma, Anthony Lopes and Maxence Caqueret in January, and this summer they have already sold Rayan Cherki to Manchester City.

Malick Fofana is also attracting interest, with Chelsea said to have enquired, after the teenager impressed during Lyon's Europa League quarter-final second-leg clash with Manchester United at Old Trafford.

Malick Fofana of Lyon celebrating a goal in the 2024/25 Europa League

Malick Fofana of Lyon celebrating a goal in the 2024/25 Europa League (Image credit: Getty Images)

The relegation, if upheld, would be good news for Palace, given it would therefore confirm their place in the Europa League for next season. The Premier League also still needs to ratify and confirm Johnson's sale to Textor.

In FourFourTwo's view, Textor has made a complete mess of this situation, and if Lyon's relegation is officially confirmed, hell will likely break loose, given how passionately French football fans feel about their club. If you have an association with Palace, however, you are more than likely rubbing your hands together at this point.

Matthew Holt

Matthew Holt writes freelance for FourFourTwo, amongst others, and boasts previous experience at GOAL and SPORTBible. He now works with us alongside his time at Manchester United and Reach PLC, aiding with online content for the website. Career highs include working at the FA Cup final, as well as scoring at Old Trafford in front of the Stretford End. A long-term sufferer of his beloved Scunthorpe United, he is often seen on the padel court, as well as occasionally as a six-a-side call-up.

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