Crystal Palace have been ‘demoted’ to the Europa Conference League – with Nottingham Forest in line to take their Europa League slot.
In a devastating blow for the FA Cup winners, UEFA have confirmed that Palace will drop from the second tier European competition to the third after breaching its rules on multi-club ownership.
Palace officials are understood to be furious with the decision, and intend to appeal to the Court of Arbitration for Sport (CAS). CAS have the ability to fast-track cases, and would no doubt do so in this instance.
However, last month they upheld UEFA’s decision to kick Drogheda United out of the Conference League under multi-club ownership rules.
As is the case with Palace, the Irish side missed UEFA’s March 1 deadline to make changes to ownership or executive structure to navigate any issues. CAS ruled that the March 1 deadline – also missed by Palace – was fair and had been communicated.
Palace’s majority owners were Eagle Football Holdings, a group owned by US businessman John Textor.
Crystal Palace initially qualified for the Europa League through their FA Cup win but have now dropped out of the competition
Lyon, who are majority owned by Palace’s previous shareholder John Textor, will compete in the competition after their appeal to stay in Ligue 1 was upheld
The group owns French side Lyon, who also qualified for the Europa League. Rules state that, in cases of multi-club ownership where two teams qualify for the same competition, only one can take part.
That place goes to the club which finished higher in its domestic league. Lyon ended in sixth, while Palace were 12th.
A UEFA spokesperson said: ‘The Club Financial Control Body First Chamber had opened proceedings against Crystal Palace and Olympique Lyonnais due to a potential conflict with the multi-club ownership rule provided for in Article 5 of the UEFA Club Competitions Regulations.
‘On 9 July 2025, the appeal instance of the French financial control authority (DNCG) decided not to relegate Olympique Lyonnais to Ligue 2. Consequently, and following an assessment by the CFCB of all the other relevant conditions included in the settlement agreement, Olympique Lyonnais will not be excluded from the 2025/26 UEFA club competitions (see media release of 30 June 2025).
‘Consequently, the CFCB First Chamber pursued the assessment of the documentation submitted by Olympique Lyonnais and Crystal Palace and concluded that the clubs breached, as at 1 March 2025, the multi-club ownership criteria foreseen in Art 5.01 of the UEFA Club Competition Regulations.
‘For this reason, and in accordance with the provisions set in Art. 5.02, 5.03 and 5.04 of the UEFA Club Competitions Regulations, the CFCB First Chamber decided to accept Olympique Lyonnais’ admission to the 2025/26 UEFA Europa League; and to reject Crystal Palace’s admission to the 2025/26 UEFA Europa League and to accept Crystal Palace’s admission to the 2025/26 UEFA Conference League.
‘The present decision may be appealed against before the Court of Arbitration for Sport, in accordance with Articles 62 and 63 of the UEFA Statutes.’
Forest, who were due to compete in the Conference League after finishing in seventh, could now replace Palace in Europe’s second-tier competition instead.
Mail Sport revealed Palace officials were to jet to UEFA HQ in Switzerland to plead their case.
They argued that, as Textor held only 25 per cent of voting rights, he was not in a position of influence at Selhurst Park.
They were given hope when Lyon were relegated to Ligue 2 for financial breaches. However, Lyon were successful in their appeal earlier this week, and now UEFA have confirmed the decision.
