Crystal Palace’s Future in the Europa League Hinges on Lyon’s Relegation

Next week may determine whether Crystal Palace will compete in the 2025-26 Europa League, as Lyon’s relegation saga unfolds. Palace secured their spot in Europe’s second-tier competition after winning the FA Cup, but their eligibility has been questioned due to potential violations of rules concerning multi-club ownership.

Pending a verdict from UEFA, the decision was postponed, and a final ruling is expected soon. The controversy centers around US businessman John Textor, who owns a 43% stake in Palace through Eagle Football Holdings. Textor is also the majority owner of Lyon, which qualified for the same tournament. Since clubs under the same ownership group cannot participate in the same competition, this presents a conflict.

Textor has agreed to sell his stake in Palace to Woody Johnson, owner of the New York Jets, but UEFA’s approval remains uncertain. Lyon finished sixth in Ligue 1, compared to Palace’s 12th. However, Lyon could be relegated due to violations of financial regulations, which would clear the way for Palace’s participation.

The fate of Lyon likely hinges on a decision next week by the National Management Control Directorate (DNCG), which oversees financial compliance. Once the DNCG rules, UEFA will make their call. Lyon’s management has expressed hope that the club will be able to compete in the Europa League, especially if they succeed in their appeal.

Meanwhile, Lyon has experienced internal changes, with John Textor stepping down as president and Michele Kang taking over. The club is eager to resolve these issues to prepare for the upcoming season, during which they are currently restricted from making new signings. Several players are also anxious to understand which division they will compete in.

Key Dates and Developments

• Decision from the DNCG expected next week
• UEFA to announce their ruling after the DNCG’s verdict
• If Lyon’s appeal fails, Palace could secure their Europa League spot

Despite financial struggles—Lyon reported debts of €500 million last year—the club claims their financial situation has improved. Should Lyon’s relegation be confirmed, several former Premier League players, including Nemanja Matic and Ainsley Maitland-Niles, could feature in Ligue 2 next season.