FRENCH giants Lyon have been relegated to the second division.
The decision comes due to debts racked up by their owners the Eagle Football Group.
Lyon have been relegated to Ligue 2Getty
The company is fronted by American businessman John Textor.
Last year’s accounts showed that the Eagle Football Group’s debts had soared to £422million.
Lyon were subsequently hit with provisional relegation to Ligue 2 back in November based on their finances not improving.
But despite Textor raising funds by selling players, the club’s women’s team and his 43 per cent stake in Crystal Palace for £190m, the authorities have ruled it as not enough.
Lyon can launch an appeal following the decision by the DNGC, who oversee the accounts of French football clubs.
Should the relegation stand, they will be replaced in the top-flight by Reims, who were beaten in the relegation play-off by Metz.
Textor also owns Brazilian club Botafogo and Belgian outfit RWD Molenbeek.
The sale of his Palace stake to New York Jets owner Woody Johnson needs to be ratified by the Premier League via the owners’ and directors’ test.
The South Londoners’ spot in next season’s Europa League has been under threat due to Lyon also qualifying for the competition.
Textor’s influence over both clubs could break Uefa ownership rules and a decision is expected to be revealed on Friday.
Selhurst Park chiefs have been meeting with the governing body in a bid to avoid being dumped out of the Europa League.
Lyon’s relegation could impact them playing on the continent next season if they have points taken away, meaning their sixth place finish in Ligue 1 no longer stands.
But if they are simply booted out the league, last season’s finish could still stand, as would their qualification for Europe.
Uefa regulations state that if two clubs are ruled to have the same owners, the team with the higher league finish gets the nod to compete.
Lyon are one of France’s biggest clubs and they have won the title seven times.
They made the Champions League semi-final as recently as 2020.
The club was last in the second tier in 1989.
Their relegation could lead to the sale of many of their highly-rated players like winger Malick Fofana, who has been linked with Liverpool and Chelsea.
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