Crystal Palace's Europa League hopes hang in the balance as Lyon announce UEFA agreement

Lyon have struck a deal with UEFA which they hope will pave the way for them to play in the Europa League next season. The announcement could spell bad news for Crystal Palace, whose own participation in Europe is up in the air.

Palace beat Manchester City in the FA Cup final to earn a place in the 2025/26 Europa League, but UEFA’s multi-club ownership rules have thrown a spanner in the works. Eagle Football Holdings, who have a 43 per cent stake in Palace, are also the owners of Lyon and UEFA doesn’t allow two clubs with the same owners to compete in the same competition.

John Textor, of Eagle Football Holdings, announced on Monday that he had sold his stake to US billionaire Woody Johnson for £190million in an effort to rectify the issue. But that deal still has to be ratified by the Premier League because Johnson, who also owns NFL franchise the New York Jets, has to pass the owners’ and directors’ test.

The situation was further complicated by the news on Tuesday that Lyon had been relegated from Ligue 1 due to financial issues. The French giants finished sixth in Ligue 1 but saw their demotion confirmed by the National Directorate of Management Control (DNCG).

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Nevertheless, they have now announced that they should be able to keep their place in the Europa League next season, despite playing in Ligue 2. “After validating its financial viability procedure, Olympique Lyonnais (OL) has signed an agreement with UEFA's club financial control body,” the statement read.

“The club could thus participate in the Europa League competition next season, subject to a favorable outcome during the appeal of the DNCG's decision. OL thanks to the UEFA representatives who supported it in this procedure.”

Eagle Football Holdings are reported to have mounted up debts of around £422m to fall foul of the regulators. But chiefs Textor and Michael Gerlinger are understood to have personally given financial presentations to provide guarantees and reassurances to UEFA’s Club Financial Control Body.

According to reports in France, Textor has reportedly promised a €35m (£30m) investment to steady the ship. But it remains to be seen whether the DNCG and UEFA have different interpretations of Lyon’s finances.

Palace are remaining hopeful that Textor’s decision to sell the club to Johnson will allow them to compete in the Europa League next season. A decision from UEFA is expected by the end of the month after club officials flew to Switzerland for high-stakes talks.

A club statement earlier this week read: "Crystal Palace Football Club can confirm that Robert Wood Johnson ‘Woody’, an American businessman and co-owner of the New York Jets, has signed a legally binding contract to purchase Eagle Football’s holding in the Club.

“Whilst the completion is pending approval from the Premier League and Women’s Super League, we do not envisage any issues and look forward to welcoming Woody as a partner and director of the club. We would like to go on record to thank John Textor for his contribution over the past four years and wish him every success for the future."

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