Former Champions League semi-finalists RELEGATED in shock decision that could affect Crystal Palace Europa League hopes

The club were last in the second tier in 1989

KNOCKED DOWN Former Champions League semi-finalists RELEGATED in shock decision that could affect Crystal Palace Europa League hopes

FRENCH giants Lyon have been relegated to the second division.

The decision comes due to debts racked up by their owners the Eagle Football Group.

2 Lyon have been relegated to Ligue 2 Credit: Getty

2 John Textor's Eagle Football Group has been unable to prove that its finances have improved Credit: Getty

The company is fronted by American businessman John Textor.

Last year's accounts showed that the Eagle Football Group's debts had soared to £422million.

Lyon were subsequently hit with a provisional relegation to Ligue 2 based on their finances not improving.

Textor has tried to raise funds by selling players, the club's women's team and his 43 per cent stake in Crystal Palace for £190m.

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But the authorities have ruled that these decisions have not brought the famous old club back to sufficient financial health to avoid the provisional sanction being imposed.

Lyon have confirmed that they will appeal the decision by the DNGC, who oversee the accounts of French football clubs.

A club statement read: "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.

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"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.

"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."

Should the appeal be unsuccessful, they will be replaced in the top-flight by Reims, who were beaten in the relegation play-off by Metz.

Textor said last year that there was "no chance" Lyon would be demoted.

The billionaire also owns Brazilian club Botafogo and Belgian outfit RWD Molenbeek.

The sale of his Palace stake to New York Jets owner Woody Johnson needs to be ratified by the Premier League via the owners’ and directors’ test.

The South Londoners' spot in next season's Europa League has been under threat due to Lyon also qualifying for the competition.

Textor's influence over both clubs could break Uefa ownership rules and a decision is expected to be revealed on Friday.

Selhurst Park chiefs have been meeting with the governing body in a bid to avoid being dumped out of the Europa League.

Lyon's relegation could impact them playing on the continent next season.

They may have points taken away, meaning their sixth place finish in Ligue 1 no longer stands.

But if they are simply booted out the division, last season's finish could still stand, as would their qualification for Europe.

Uefa regulations state that if two clubs are ruled to have the same owners, the team with the higher league finish gets the nod to compete.

Lyon are one of France's biggest clubs and they have won the title seven times.

They made the Champions League semi-final as recently as 2020 and they were last in the second tier in 1989.

Their relegation could lead to the sale of many of their highly-rated players like winger Malick Fofana, who has been linked with Liverpool and Chelsea.

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