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### **Lyon's Reinstatement Plunges Crystal Palace's European Bid into Doubt**

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### **Lyon's Reinstatement Plunges Crystal Palace's European Bid into Doubt**

 

Crystal Palace's hard-won qualification for the UEFA Europa League has been thrown into serious jeopardy following a dramatic turn of events in France, where Olympique Lyonnais successfully appealed a decision to relegate them from Ligue 1. The reversal reignites a significant multi-club ownership (MCO) conflict, leaving the South London club's European fate hanging in the balance and dependent on a final ruling from UEFA.

### **Lyon's Reinstatement Plunges Crystal Palace's European Bid into Doubt**
### **Lyon's Reinstatement Plunges Crystal Palace's European Bid into Doubt**

### **Lyon's Reinstatement Plunges Crystal Palace's European Bid into Doubt**


The core of the issue lies

 with UEFA's stringent regulations designed to protect the integrity of its competitions. Article 5 of these rules prohibits any single entity or individual from having "control or decisive influence" over more than one club participating in the same UEFA club competition.

  •  This regulation is central to the conflict involving American businessman
  •  John Textor and his Eagle Football Holdings portfolio, which includes a
  •  majority stake in Lyon and, until recently, a substantial share in Crystal
  • Palace.

 

Palace had seemingly navigated

 this complex issue. After securing a coveted Europa League spot, the club faced the challenge of Textor's 77% ownership of Lyon, who also qualified for the same competition.

  1.  In a proactive move, Textor recently sold his 42.9% stake in Crystal Palace to
  2.  Woody Johnson, owner of the NFL's New York Jets, in a deal reportedly
  3.  worth nearly £190 million. The sale was intended to demonstrate a clear
  4.  separation and prove to UEFA that Textor no longer held "decisive influence"
  5.  over the Premier League side.

 

Just as this ownership restructuring was underway, Palace was handed what appeared to be a definitive lifeline. France's football financial watchdog, the DNCG (*Direction Nationale du Contrôle de Gestion*), initially ruled to relegate Lyon to Ligue 2 due to financial irregularities. 

This decision would have automatically resolved the MCO conflict, as a team in France's second tier is ineligible for the Europa League, giving Palace a clear path to participate.

 

However

 in a significant blow to the Eagles, Lyon's appeal against the DNCG's ruling was successful. The French Football Federation's appeal committee overturned the relegation, reinstating Lyon to Ligue 1 for the upcoming season. While the club will be subject to strict financial controls, including a cap on its wage bill and transfer spending, its top-flight status—and its European qualification—is now restored.

 

  • In a statement, Lyon celebrated the decision, expressing "gratitude to the
  •  Appeal Committee for recognizing the ambition of the club's new
  •  management."

 

This reinstatement 

places Crystal Palace back in a precarious position. With both clubs now eligible for the Europa League, the original conflict returns. According to UEFA's MCO hierarchy, if two clubs under the same influential ownership qualify, the spot is awarded to the team that achieved a higher ranking in its domestic league. Given Lyon’s league position, they would hold precedence, forcing Crystal Palace out of the competition.

 

The London club now faces a nervous wait for a definitive judgment from UEFA's Club Financial Control Body (CFCB), which will determine if Textor’s recent divestment is sufficient to eliminate his influence. 

Should the ruling go against them, Crystal Palace may consider pursuing further action, including a potential appeal to the Court of Arbitration for Sport (CAS). What was a moment of triumph for the club has now become a complex administrative and legal battle, with its European dream hanging by a thread.

### **Lyon's Reinstatement Plunges Crystal Palace's European Bid into Doubt**


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Tamer Nabil Moussa

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