Seven-time French champions Olympique Lyonnais have been relegated to Ligue 2 due to severe financial issues, a decision the club has branded “incomprehensible.”
Despite selling key players and releasing high earners, Lyon failed to convince French football’s financial watchdog (DNCG) that their finances had sufficiently improved after being provisionally demoted in November.
Lyon, last in the second tier in 1989, will appeal the ruling.
The decision has significant implications for Crystal Palace’s Europa League aspirations.
Both clubs qualified for the competition, but UEFA rules prevent teams under the same ownership from competing in the same European competition.
While Lyon owner John Textor recently agreed to sell his stake in Crystal Palace, the uncertainty surrounding Lyon’s relegation and potential appeals means Palace’s European future remains unclear, despite winning the FA Cup.
Crystal Palace awaits a definitive ruling from UEFA.