Olympique Lyonnais Confirms Ligue 1 Survival After Successful Relegation Appeal

‎Facing imminent collapse and under pressure to secure €200 million within a week, Olympique Lyonnais will stay in Ligue 1 after their case was evaluated by the DNCG on Wednesday.

‎The change at Olympique Lyonnais has proven beneficial. Michelle Kang’s appointment has boosted the confidence of ARES, the investment fund behind the club’s ownership, as well as the DNCG.

‎The decision means Lyon will maintain their top-flight status, which they have retained since the 1988-89 season.

‎“Olympique Lyonnais welcomes today’s decision by the DNCG to keep the Club in Ligue 1,” the club said in a statement on Wednesday. “OL thanks the appeals committee for recognizing the ambition of the club’s new management, determined to ensure serious management in the future.

‎“The new management, supported by the commitment and dedication of our shareholders and lenders, is extremely grateful for all the support received both within and outside the club, including from its supporters, employees, players, partners, and elected officials.

‎“Today’s decision is the first step in restoring confidence in Olympique Lyonnais. We can now focus our attention on our sporting objectives and fully prepare for next season.”

‎OL appealed to the financial watchdog on Wednesday, and won the case by providing the €200m (half of which has been blocked to meet the club’s needs throughout the season without affecting the competition) of funds required to stay in Ligue 1.

‎In June, the club was relegated administratively to Ligue 2, a sanction that was confirmed at the season’s end. This put the club on a precarious edge, with the risk of further decline if Eagle’s creditors refused to revisit their stance.

‎The replacement of Textor by Kang, supported by Michael Gerlinger, has brought a sense of calm and stability.

‎For all that, a crisis of austerity is imperative for OL. To take part in the Europa League, the club will have to pay €50m, plus a €12.5m fine linked to the income and expenditure restrictions imposed by UEFA. The wage bill will be restricted, and transfer allowances will be proposed.

‎In addition, according to Le Progres, Groupama’s naming of the stadium could come to an end after eight years. The contract expires on July 31st, and no agreement was reached when Textor was still at the helm.

‎The effect on their Europa League ambitions

‎Lyon finished the 2024-25 Ligue 1 season in sixth place, earning a spot in the Europa League alongside fifth-place Lille. This qualification has created uncertainty regarding Crystal Palace’s participation in European competitions next season, following their first FA Cup victory.

‎The issue stems from multi-club ownership rules, as John Textor’s Eagle Football owns both Palace and LyonJohn Textor’s Eagle Football owns both Palace and Lyon. Lyon’s superior league position gives them priority for Europa League entry under these rules.

‎UEFA had postponed its decision on Palace’s spot until after the case regarding Lyon’s relegation was resolved, and no update has been provided since.

‎The transfer market is also expected to see significant departures from the squad, as severance payments are likely to be substantially reduced due to the current situation.

‎The 2025/26 season is shaping up to be extremely tense and challenging.