Why Lyon Could Play Europa League Despite Ligue 2 Demotion
- French powerhouse Olympique Lyon have been relegated to Ligue 2 despite finishing sixth in Ligue 1
- But the French powerhouse have secured UEFA’s approval to participate in the upcoming Europa League campaign
- The club's demotion was first announced by the DNCG, the body responsible for monitoring the financial health of French professional football team
Lyon have officially been cleared by UEFA to take part in next season’s Europa League, even though France’s football financial regulator, the DNCG, has ruled to demote them to Ligue 2.
On Tuesday, the DNCG refused to overturn Lyon's provisional relegation, citing the growing debt of their parent company, Eagle Football.
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Despite finishing sixth in Ligue 1, Lyon’s European qualification was called into question, even after the French FA granted them a UEFA licence.
Eagle football provides financial guarantees
According to Foot Mercato, UEFA has confirmed Lyon's participation in the 2025–2026 Europa League.
The decision follows financial presentations made by Eagle Football's key figures, John Textor and Michael Gerlinger, to UEFA’s Club Financial Control Body.
Textor reportedly pledged a €35 million investment through secured funds to reassure UEFA officials of the club’s financial stability.
The approval reflects a clear difference in how UEFA and the DNCG interpret Lyon’s financial health.
Questions over Crystal Palace’s Europa League future
However, doubts linger regarding Crystal Palace’s eligibility to compete in the Europa League next season due to their shared ownership with Lyon under Eagle Football.
As it stands, the Premier League has yet to officially ratify Textor’s sale of his 45% stake in the London club.
Until then, concerns remain over a potential conflict of interest should both clubs qualify for the same European competition.
Lyon left baffled by decision
"With secured funds and recent sporting success that earned us European qualification two years running, we genuinely cannot comprehend how an administrative ruling could relegate such a historic French club," Lyon said in a statement.
The club confirmed plans to appeal the decision, insisting they can provide the financial resources necessary to secure their Ligue 1 status.
In efforts to stabilise their finances, Lyon generated around £45m through the sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June, per The Guardian.
High-profile players like Alexandre Lacazette, and Anthony Lopes have also been released to cut costs.
Lyon’s fall mirrors Bordeaux’s collapse
Only five clubs have won more French league titles than Lyon, who claimed seven consecutive Ligue 1 trophies between 2002 and 2008.
The giants of French football also reached the Champions League semi-finals as recently as 2020 and have not played in Ligue 2 since 1989.
Their dramatic demotion follows the fate of six-time champions Bordeaux, who lost professional status last year after financial collapse saw them relegated to the fourth tier.
Lyon freezes Nuamah's EPL move
In a previous publication, YEN.com.gh reported that Nuamah's move to Premier League outfit Everton has been halted by Lyon.
Nuamah was expected to join Everton in the January transfer window after talks with the Merseyside club.
Source: YEN.com.gh
