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Lyon confident of Ligue 1 return as Crystal Palace await Europa fate

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Why Laurens is optimistic for Crystal Palace's Europe League spot (1:30)

Julien Laurens explains why he thinks both Crystal Palace and Lyon will be able to compete in the Europa League next season. (1:30)

Lyon are confident their relegation to Ligue 2 will be overturned, sources told ESPN, as their appeal hearing started on Wednesday morning in front of the appeal committee of the DNCG, the regulator that control the French football clubs finances and accounts.

The hearing is central to Crystal Palace's hopes of playing in European competition for their first time in their history next season. The Premier League side qualified for the Europa League after winning the FA Cup in May. If Lyon keep their place in Ligue 1 it is likely they will also keep their place in European competition too, which could mean Palace lose out.

The DNCG sanctioned Lyon on June 24 and relegated them to Ligue 2 for financial issues. Lyon lodged an appeal and are presenting the committee with a new plan to convince them to overturn the original decision.

The main issue was a debt of €541 million ($634m) owed by the club and a massively inflated wage bill without much cash flow. To obtain their place back in Ligue 1, Lyon need a cash injection of €100m and to bring another €100m to serve as a guarantee for the next two years.

John Textor, Lyon's owner via his holding company the Eagle Football Group and the club's president, was forced to step down from the board and his role of president by his associates. Michele Kang, a shareholder in Eagle Football Group and successful businesswoman, is now in charge.

Textor also owns a stake in Palace, via Eagle Football Group. He is in the process of a sale to New York Jets owner Woody Johnson for £190m ($254m) but that deal is yet to be confirmed officially.

The verdict should be known on Wednesday evening. If the decision to relegate Lyon is maintained the club will have to withdraw from the Europa League which they were set to play in this season. Indeed, UEFA have already stated that Lyon will not be allowed to play in Europe if their relegation is upheld.

However, Lyon will be able to appeal again, this time in front of the French Olympic Committee, the CNOSF, to try to stay in Ligue 1 and have their relegation overturned. And if that is unsuccessful they have one last opportunity in front of a tribunal.

In the meantime, the first team squad, formed of 26 players, started preseason training on Tuesday.