On July 11, 2025, UEFA’s Club Financial Control Body (CFCB) delivered a landmark ruling: Crystal Palace has been relegated from the Europa League to the Conference League for the 2025–26 season, due to violations of UEFA’s multi‑club ownership regulations. Here’s everything you need to know, in detail:
Background: How Did This Begin?
- Crystal Palace earned their Europa League berth for 2025–26 by winning the FA Cup, defeating Manchester City in May.
- Olympique Lyonnais (Lyon) qualified by finishing sixth in Ligue 1.
- The issue arose because both clubs were linked to American investor John Textor, via Eagle Football Group—Textor held a controlling stake in Palace (~43–45 %) and a majority stake in Lyon (~77 %).
UEFA’s Regulation & Timeline
- According to Articles 5.01–5.04 of UEFA’s club competition regulations, no individual or entity may exercise decisive influence over two clubs that qualify for the same European competition..
- By March 1, 2025, Palace and Lyon were deemed non-compliant with these rules.
- Textor later attempted to sell his Palace stake to Woody Johnson (New York Jets co-owner), and he resigned from Lyon’s board, but UEFA judged these steps too late to meet compliance criteria.
The Decision & Immediate Consequences
- The CFCB First Chamber ruled:
- Accept Lyon’s admission to the 2025–26 Europa League
- Reject Palace’s admission to that same competition, instead assigning them to the Conference League.
- Because Lyon finished higher domestically (6th vs Palace’s 12th in England), Lyon keeps the Europa League spot under UEFA’s tie-breaking approach.
- As a result, Nottingham Forest, who finished 7th in the Premier League and would have entered the Conference League, may be elevated to the Europa League, subject to eligibility and Palace’s appeal outcome .
Reactions: Palace’s Position
- Crystal Palace chairman Steve Parish condemned the ruling as a “terrible injustice”, arguing that Palace had no coordinated structure, shared staff, players, or influence with Lyon.
- Parish denounced UEFA’s interpretation of Textor’s role as “ridiculous” and one of “the greatest injustices” in European football.
- Palace insists the club legitimately earned its spot in Europe by winning the FA Cup and pledges to challenge the decision at the Court of Arbitration for Sport (CAS).
- John Textor also expressed his disappointment, noting that a sale process had begun before the deadline and was not completed until later—making the decision feel devastating to Palace supporters.
Wider Implications & Context
- Previously, UEFA allowed multi‑club ownership groups like City Football Group (Man City, Girona) or Ineos (Man Utd, Nice) to participate across European competitions—provided separation measures (e.g. blind trust) were implemented before the deadline.
- For the 2025–26 season, UEFA advanced the compliance deadline from June 1 to March 1, making Palace the first English club to be excluded under the stricter regime.
- Earlier cases this year include Drogheda (Ireland) disqualified due to a conflict with Silkeborg IF (Denmark), demonstrating UEFA’s broader enforcement of multi-club ownership rules across Europe.
Looking Ahead: What Comes Next?
- CAS Appeal: Crystal Palace will likely request an expedited hearing at the Court of Arbitration for Sport, hoping to overturn UEFA’s ruling before Conference League qualifiers begin.
- Nottingham Forest’s Europa League Spot: Should Palace’s appeal fail or be delayed beyond playoff deadlines, Forest may inherit Palace’s Europa League berth—a potentially lucrative prize worth tens of millions of euros.
- Regulatory Review: Parish called on UEFA President Aleksander Čeferin and football authorities to reform what he sees as overly rigid multi‑club rules, arguing they unfairly penalize clubs with no operational ties .
Summary
Crystal Palace’s demotion to the Conference League stems from UEFA’s enforcement of its multi‑club ownership regulations, emphasizing no individual may influence multiple clubs in the same European competition. Despite efforts to divest, the club missed the March 1 compliance deadline, prompting UEFA to hand the Europa League spot to Lyon—who finished higher domestically. The decision has been widely criticized by Palace leadership as disproportionate and unjust. With an appeal underway at CAS, the final fate of their European adventure rests on whether UEFA’s ruling can be overturned before next season’s competitions begin.
