Historic French powerhouse Lyon successfully overturned its relegation on Wednesday, ensuring it will remain in Ligue 1 next season.
The seven-time French champion had been demoted to the second tier two weeks ago by the DNCG – the French league’s financial watchdog – due to ongoing financial irregularities and debts estimated at 175 million euros ($203 million).
Lyon swiftly appealed the decision and made its case before the DNCG on Wednesday, ultimately overturning the ruling.
“Olympique Lyonnais welcomes today’s decision by the DNCG to keep the club in Ligue 1,” Lyon said in a statement. “(Lyon) thanks the appeals committee for recognizing the ambition of the club’s new management, which is determined to ensure serious management in the future.”
Last Wednesday, American businesswoman Michele Kang took over as president after John Textor resigned following the club’s relegation.
Lyon added that Textor has also resigned from the board of directors. The American businessman became Lyon president three years ago, taking over from longstanding incumbent Jean-Michel Aulas, who sold his shares to Textor’s Eagle Football Holdings.
Kang, 66, is supported in her role by Michael Gerlinger, the general manager of Eagle Football Holdings.
“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,” Lyon added. “Today’s decision is the first step in restoring confidence in Olympique Lyonnais. We can now focus our attention on our sporting objectives, fully preparing for next season.”
The French football federation said in a brief statement that the DNCG’s decision allows for Lyon’s wage bill and transfer spending to be placed under close supervision.
Lyon, which won its seven league titles from 2002-08, opens its campaign away to Lens in mid-August.
Wednesday’s verdict also ensures Lyon will play in the Europa League next season after qualifying with a sixth-place finish in Ligue 1.
That, in turn, places Crystal Palace’s spot in the Europa League in jeopardy.
The English club won the FA Cup last season for its first major trophy and qualified for the Europa League.
However, Textor, whose Eagle Football Holdings owns Lyon, also holds a 43% stake in Palace. According to UEFA regulations, if a party has more than a 30% stake in two different clubs, those clubs cannot compete in the same European competition. Lyon finished higher in its league than Palace, which placed 12th in the Premier League last season.
Textor has agreed to sell his Palace stake to New York Jets owner Woody Johnson, though the deal has not yet been confirmed.
European governing body UEFA had postponed its decision until Lyon’s case was resolved. Its financial control body is now expected to rule on Palace’s European status in the coming days.
A Champions League semifinalist five years ago, Lyon narrowly lost to Manchester United in the Europa League quarterfinals this season and missed out on a financial windfall by failing to qualify for the Champions League.
The club received a much-needed cash injection by selling coveted playmaker Rayan Cherki to Manchester City for 36 million euros ($41 million), while high-earning forward Alexandre Lacazette also left the club.
Lyon is now better positioned to keep hold of its top players this season, though strengthening the squad may prove difficult amid tight financial constraints.
