Relegation Lyon: An appeal and a chain reaction

Mon Dieu! Football trips Olympique Lyon will also lead to the Ligue 1 and probably also to the Europa League in 2025/2026. The appeal on July 9, 2025 against the forced relegation of the French serial champions of the 2000s prevented another fall of a renowned club in the land of the two-time world champions after Girondins Bordeaux. But what are the consequences of the avoided relegation for Ligue 1 and European football?

Since July 9, 2025, qualification matches for the 2025/2026 European competitions have been underway, but it is still unclear where and whether FA Cup winners Crystal Palace will even be allowed to compete.

The successful appeal by Olympique Lyon against the forced relegation imposed at the end of June 2025, which would have plunged the Ligue 1 champions of 2002 to 2008 into oblivion, worsened the situation for “The Eagles” from south London. 

Football trips Olympique Lyon: Glorious moments of "OL" in the Europa League like in the photo on April 17, 2025 at Manchester United, and of course also in Ligue 1 could happen again in 2025/26 after the relegation was averted. Perhaps OL will play with more freedom... Photo: Imago Images / Action Plus

Forced Relegation Olympique Lyon: Happy Ending Instead of Horror Scenario

"The next giant in existential crisis – Lyon fears for its future after forced relegation", this headline from the Kronen-Zeitung Vienna (edition of June 27, 2025) summed up the dilemma at "OL": "The golden years, when they were regulars in the Champions League knockout stage, are long gone", the tabloid continued, "Olympique now faces the ultimate catastrophe."

This was averted through the appeal against the relegation. The appeals committee of the national financial watchdog (DNCG) overturned on July 9, 2025, the administrative demotion imposed by the directorate on June 24. 
Lyon had already announced at that time its intention to appeal – and succeeded after a two-and-a-half-hour hearing. 

"Olympique Lyon welcomes today’s decision by the DNCG to keep the club in Ligue 1," said an initial statement on the OL website. The club thanked the appeals commission for recognizing the ambition of the new management, which is determined to ensure sound financial governance going forward.”

Olympique Lyon Debt: How much money was at Stake?

That hasn’t always been the case recently. Under U.S. owner John Textor, the Champions League semi-finalist from 2010 and 2020 (each time knocked out by Bayern Munich) piled up debts of around 460 million euros. Even the transfer of Rayan Cherki, who went to Manchester City for €36.5 million, could not prevent the initial forced relegation ruling against Olympique Lyon.

Olympique Lyon in Ligue 2 – When did that ever happen?

Six consecutive league titles for "OL" in the golden 2000s, when Monsieur Le Benzema played for Lyon among others, set a record in the French elite league founded in 1945. 

There’s no doubt Olympique Lyon made French football history with its championship run and spectacular Champions League performances in the Champions League.

Olympique Lyon Appeal: Staying Up brings clarity

Forced relegation would have dropped the club to the second-tier Ligue 2 for the first time since 1989. The relief was therefore immense. 

Lyon committed to a fresh sporting start. “This is the first step in restoring trust in Olympique Lyon," said the club’s statement from July 9, 2025, “we can now focus fully on our sporting objectives by preparing comprehensively for the upcoming season.”

With the reversal of this decision, it is clear: Racing Club Strasbourg, seventh in last season’s Ligue 1, will not move up to the Europa League, but will only compete for a spot in the Europa Conference League. 

RC Lens, eighth in the 2024/2025 season and overtaken by "OL" in a wild final duel (3:1) on the last matchday in 2002, is once again the loser – and will only be spectators in Europe 2025/2026.

Also for sixteenth-placed Stade Reims, with Lyon staying up, all hopes of remaining in Ligue 1 are gone. 

Europa League: Crystal Palace or Lyon?

After this decision, Olympique Lyon will not only continue to play in Ligue 1 but also likely in the Europa League, where last year they had an epic quarterfinal appearance at Manchester United (4:5 a.e.t.). 

And OL’s participation in Europe’s second-tier competition is likely to come at the expense of Crystal Palace. 

The 2025 FA Cup winners, who celebrated the first major title in their 120-year club history, will likely be excluded due to UEFA’s multi-ownership rules. 

The South London club is part of Eagle Football Holding, and Lyon investor Textor also held 43 percent of the shares in Palace. 

Even though Textor sold his Palace shares in early July and resigned from his leadership roles at Lyon, the missed deadline may not be enough to allow both clubs to play in the Europa League. And that would be a bitter pill for the English club. 

Because: A “relegation” to the Conference League is also not possible due to multi-ownership, as Brøndby IF from Denmark – another club financed by Crystal Palace co-owner David Blitzer – is already competing there. 

“Missing the Europa League remains an unthinkable concept,” wrote Crystal Palace fan author Alex Pewter in a BBC column on June 30, 2025. 

And that is exactly the scenario Crystal Palace now faces…Mon Dieu!