In Nyon, Switzerland, UEFA confirmed on Monday that the French club Lyon will be allowed to continue competing in the Europa League after successfully meeting a crucial deadline to avoid disqualification. The club, which is owned by American businessman John Textor, demonstrated to UEFA’s club finance monitoring panel that its financial situation was stable enough to complete the season.

Previously, Lyon’s financial reports submitted in December indicated issues regarding their adherence to the vital principle of financial sustainability. The club had accrued debts exceeding 500 million euros (approximately $500 million) last year and was warned in November of a potential drop to the second tier of French soccer by the national regulatory body.

Lyon faced a significant risk of being removed from the Europa League if they did not comply with a January 30 deadline set by UEFA’s oversight panel, which required a thorough clean bill of financial health from independent auditors. On the same date, Lyon achieved a 1-1 draw against Ludogorets Razgrad at home, securing a position in the top eight of the 36 teams in the Europa League standings. This not only confirmed their advancement to the knockout round of 16 but also yielded an additional 1.75 million euros (around $1.8 million) in prize money from UEFA.

UEFA stated on Monday that Lyon had taken appropriate actions to satisfy the conditions set forth by the Club Finance Control Body, thereby confirming that the previously mentioned conditional disqualification would not be enforced. The club’s financial accounts are evaluated by a panel led by Sunil Gulati, an economics lecturer at Columbia University, as part of a system formerly known as Financial Fair Play.

Lyon will be included in the draw for the round of 16 slated for February 21. Additionally, in January, the club was able to raise tens of millions of euros through player transfers during the midseason trading window.

Having owned Lyon for the past two years, Textor has voiced ongoing criticism regarding the financial regulations imposed on clubs in both French and European soccer. He also has interests in other teams, including Botafogo, a champion club from Brazil, and Crystal Palace in the Premier League. Lyon once dominated French soccer, winning seven consecutive titles up until 2008, before being eclipsed by Qatar-backed Paris Saint-Germain, which has claimed 10 titles in the last 12 years.