French club Olympique Lyonnais have confirmed they will appeal the "incomprehensible" decision to relegate them to Ligue 2 after failing to convince authorities they had resolved their financial difficulties.

The seven-time champions were given "provisionally relegated" status in November after racking up huge debts and, despite selling several first-team players, the country's football regulator, the National Directorate of Management Control (DNCG), confirmed the relegation after a series of meetings on Tuesday.

Lyon are owned by John Textor, and the decision to relegate them to the second tier of French football comes a day after the American businessman sold his stake in Crystal Palace to New York Jets owner Woody Johnson.

It is not yet clear how this will affect Lyon's place in the Europa League, or Crystal Palace's place in European competitions. A decision by UEFA Club Financial Control Body (CFCB) on whether Olympique Lyonnais is in compliance with financial regulations is still awaited. The European body did not comment on the incident when contacted by Sky Sports News.

"Olympique Lyonnais accepts the incomprehensible decision of the DNCG this evening and confirms that it will appeal immediately. Over the past few months, we have worked closely with the DNCG, respecting all their criteria with equity investments exceeding the amounts requested. Thanks to equity contributions from our shareholders and the sale of Crystal Palace, our financial position has improved significantly and we have more than sufficient resources for the 2025/26 season. With proven means and sporting success that has secured us a place in European competitions for two consecutive years, we sincerely do not understand how an administrative decision could throw out such a great French club. We will appeal in order to demonstrate our ability to provide the necessary financial resources to guarantee the continued presence of Olympique Lyonnais in Ligue 1", the statement from Olympique, who finished sixth last season, said.

Textor told L'Equipe last week that he was confident that Lyon's financial position was resolved. In November, he said there was "no chance" of the club being relegated.

After being provisionally relegated, Lyon sold players such as Said Benrahma, Anthony Lopez and Maxence Caqueret in January. This summer, the club also parted ways with its best player, Rayan Cherki, who left for Manchester City for £34m. Olympique winger Malick Fofana is a transfer target for Chelsea. | BGNES