Crystal Palace were dropped from the 2025/26 Europa League into the Conference League because UEFA decided the club breached strict new multi‑club ownership rules linked to Lyon.
How Palace Qualified for Europe
Crystal Palace earned a place in the 2025/26 UEFA Europa League by winning the FA Cup, which normally sends the cup winners into the second‑tier European competition. At the same time, French side Lyon qualified for the Europa League via their league position, creating a problem because both clubs shared a major shareholder in American businessman John Textor.
UEFA’s Multi‑Club Ownership Rules
UEFA’s Article 5 on multi‑club ownership says no individual or entity can have “decisive influence” over more than one club in the same UEFA competition.
- Through Eagle Football Holdings, John Textor owned around 43–44% of Crystal Palace and a controlling stake in Lyon, and sat on both clubs’ boards.
- UEFA’s Club Financial Control Body (CFCB) assessed the situation as of 1 March 2025 and ruled that both Palace and Lyon breached Article 5.01 because Textor held more than 30% and had “decisive influence” at both clubs.
The CFCB First Chamber then applied Articles 5.02–5.04, which require UEFA to ensure only one of the linked clubs can appear in a given competition.
Why Palace Were Demoted and Lyon Stayed
After reviewing the submissions from both clubs, UEFA decided that Lyon would stay in the Europa League and Palace would be moved to the Conference League. Key reasons cited in reports and UEFA’s explanation:
- Lyon had already met certain restructuring and compliance conditions earlier in the process, while Palace had not demonstrated a compliant ownership structure by the 1 March deadline.
- Regulations are judged strictly on that assessment date; any later sale of shares (such as Textor agreeing to sell his Palace stake to Woody Johnson) did not count for 2025/26 eligibility.
- UEFA chose to keep Lyon in the Europa League and re‑allocate Palace to the Conference League league phase, rather than expel either club from Europe completely.
As a result, Nottingham Forest were elevated into the Europa League slot that would otherwise have been available, further angering Palace.
Palace’s CAS Appeal and Defeat
Crystal Palace immediately appealed to the Court of Arbitration for Sport (CAS), asking for:
- UEFA’s decision to be annulled.
- Palace to be readmitted to the Europa League.
- Lyon and/or Nottingham Forest to be excluded instead.
At a fast‑tracked hearing in Lausanne, a three‑judge CAS panel rejected all three strands of Palace’s case:
- CAS agreed with UEFA that John Textor held shares and “decisive influence” at both clubs on 1 March 2025, breaching the multi‑club rules.
- The panel said the regulations are “clear and do not provide flexibility” for clubs that are non‑compliant on the assessment date.
- It ruled that Palace had not been treated unfairly compared with Lyon or Nottingham Forest, so there was no basis to overturn the decision.
The CAS media release confirmed that Palace’s appeal was dismissed and that the club would compete in the 2025/26 UEFA Conference League instead of the Europa League.
What the Demotion Means for Palace
The drop from Europa League to Conference League has several consequences:
- Financial: Lower guaranteed prize money and TV revenue than the Europa League, although still a significant boost compared with no European football.
- Sporting: A theoretically easier competition, giving Palace a realistic chance of a deep run and additional European experience for a young squad.
- Governance: The case became a high‑profile test of UEFA’s tougher stance on multi‑club ownership, effectively forcing Palace to resolve their Textor shareholding situation for future seasons.
In short, Crystal Palace’s demotion was not about results on the pitch but about who owned the club off it, with UEFA and CAS both concluding that the Eagles hadn’t restructured quickly enough to avoid falling foul of Europe’s new multi‑club rules.
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