Lyon relegated to Ligue 2 but French club can appeal against the decision

Lyon have been relegated to Ligue 2 by the French Football League’s National Directorate of Management Control (DNCG).

This is after failing to provide the guarantees requested by the professional game's financial watchdog in France, according to French newspaper L'Equipe.

The seven-time French champions can appeal against the decision.

Image: Lyon owner John Textor has sold his stake in Crystal Palace

Lyon, who finished sixth in Ligue 1 last season, were provisionally relegated in November following an audit of their finances.

Lyon are owned by John Textor, and the decision to relegate them comes a day after the American businessman sold his stake in Crystal Palace to New York Jets owner Woody Johnson.

Textor's decision appears to have boosted Palace's hopes of playing in the Europa League next season.

Meanwhile, Sky Sports News has reported Lyon have been interested in signing Nottingham Forest pair Matt Turner and Danilo.

Lyon sold their best player, Rayan Cherki, earlier this month to Manchester City in a £34m deal.

Lyon winger Malick Fofana is a Chelsea target after the Blues made an enquiry this summer for the Belgium international.

Please use Chrome browser for a more accessible video player Sky Sports News chief reporter Kaveh Solhekol explains what Crystal Palace's change of ownership will do for their Europa League prospects

Lyon's demotion comes after Textor's shares in Crystal Palace threatened to be an obstacle to the Eagles' participation in the Europa League next season because he owns Lyon, who are set to enter the same competition.

Under UEFA's multi-club ownership rules, it looked as though Palace could miss out.

However, Textor's 43 per cent stake in the London club has now been sold to Johnson in a deal worth more than £190m and values Palace at more than £400m.

The sale is subject to Premier League and WSL approval, but may now free Palace up to play in the Europa League.

The Eagles qualified for the competition thanks to their FA Cup final victory over Manchester City.

A decision is expected within days that Palace will take their place in Europa League for first time in their history with the draw in August.

Textor, who through his Eagle Football Holdings group also owns a significant stake in Botafogo, who are the current Brazilian and South American champions, initially invested in Palace in 2021.

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