- Palace were at risk of being kicked out of Europe due to multi-club ownership
- John Textor sold his stake in the club in bid to help Palace and French side Lyon
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French side Lyon have been relegated from the top flight on the back of financial troubles that have now come to a head – handing Crystal Palace a major boost in their bid to play in Europe next season.
The now-former Ligue 1 giants finished sixth in the standings last season, qualifying for Europe, but were handed a provisional relegation during their last meeting with French football body LFP, which said they would be relegated if their situation didn’t improve. The decision is subject to appeal.
One of the people responsible is former Crystal Palace shareholder John Textor, who sold his stake in the Premier League side in a bid to allow them to play in Europe next season after Lyon also qualified.
Texter’s Eagle Football Group had pulled a number of financial leavers in a bid to show their financial situation had improved, including selling Texter’s shares in both Palace and the Lyon women’s team, but the LFP were not satisfied and have now taken action.
Initial doubts had been cast over Palace’s chances of competing in next season’s Europa League because they were at risk of falling foul of UEFA’s multi-club ownership rules given that US businessman Textor owned around 43 per cent of Palace’s shares but is also the majority shareholder at Lyon, who qualified for the same competition.
Now, though, Palace’s chances of being allowed to play in the Europa League – on the back of their FA Cup win – have been given a major boost.
The rules state that in multi-club groups the club which finished in a higher league position take precedent in such circumstances.
Palace have been hunting to find a resolution with UEFA. Other top-flight sides with multi-club groups have gone to great lengths to ensure they comply with UEFA’s rules.
Manchester City, Manchester United and Nottingham Forest have all been forced into action, while Chelsea and Aston Villa have also faced issues.
Palace have been confident of finding a resolution given that no facilities, players or resources are shared with Lyon.
On Tuesday, meanwhile, Textor sold his company’s stake in Palace to New York Jets owner Woody Johnson – in a move that is set to clear the way for the club play in Europe next season. A deal for around £190m has gone through, subject to Premier League approval.
UEFA declined to comment, but the hope is that Palace have now done enough to ensure they will not be booted out of the Europa League.
Those in Switzerland are aware of what could be a breakthrough development.
It is thought that Johnson will be subject to the same set-up as Textor’s firm, in that despite owning 43 per cent of the club, he will only have a quarter share of the voting rights, along with chairman Steve Parish, and US investors Josh Harris and David Blitzer.
Blitzer’s ownership of Danish club Brondby was another potential sticking point should Palace have been ‘demoted’ from the Europa League to the Europa Conference.
A decision from UEFA is expected by the end of this month – it is currently unclear how Lyon’s relegation will impact their own or Crystal Palace’s ambitions to play in Europe next season.
Lyon, meanwhile, last year, reported debts of around €500 million (£418m). Textor, though, has insisted the financial state had improved before Lyon stood in front of the DNGC.
The relegation of the club, who faced off against Manchester United in the Europa League quarter-finals last season, will mean former Premier League stars could line up in the second tier next season.
Former United and Chelsea man Nemanja Matic is on the club’s books, as well as ex-Arsenal duo Ainsley Maitland-Niles and Alexandre Lacazette.
They are seven-time Ligue 1 champions, last winning the league in 2008 – their seventh domestic title i na row.
