Background: FA Cup Glory and Europa League Qualification
In May 2025, Crystal Palace secured historic success by winning the FA Cup, earning a coveted spot in the UEFA Europa League for the 2025–26 season. It was a landmark achievement, marking their first qualification for Europe’s second-tier competition
The Multi-Club Ownership Rule Violation
However, their triumph was swiftly overshadowed by regulatory issues. The UEFA Club Financial Control Body (CFCB) ruled that Palace had violated UEFA’s multi-club ownership (MCO) regulations, as their majority shareholder John Textor also held a controlling stake in French club Olympique Lyonnais (Lyon), which had also qualified for the Europa League. According to UEFA rules, no individual may exercise decisive influence over more than one club participating in the same competition. The critical cut-off date for restructuring ownership was March 1, 2025—a deadline Palace missed
Initial Decision: Demoted to the Conference League
On July 11, 2025, UEFA officially demoted Crystal Palace to the UEFA Conference League, Europe’s third-tier competition, allowing Lyon to retain their Europa League place due to their superior league finish (Lyon finished 6th in Ligue 1; Palace ended 12th in the Premier League).
The Appeal at the Court of Arbitration for Sport
In response, Palace lodged an appeal at the Court of Arbitration for Sport (CAS) in Lausanne. The appeal sought to overturn UEFA’s ruling, challenging the enforcement of the MCO regulation, arguing unfair treatment compared to other clubs, and contesting that Lyon should have been excluded instead. The appeal process was expedited, with a decision expected by August 11 ― ahead of the new European season.
CAS Ruling: Appeal Rejected
On August 11, 2025, CAS handed down its verdict: Crystal Palace’s appeal was dismissed. The panel determined that John Textor indeed had decisive influence over both clubs at the point of assessment. It also found no evidence that Palace had been treated more harshly than other parties in the same context, and emphasized that UEFA’s MCO regulations leave no room for flexibility or exceptions.
Consequences: Conference League Campaign and Europa League Replacement
As a result of the ruling, Palace will compete in the UEFA Conference League for the 2025–26 season. Nottingham Forest, who finished seventh in the Premier League, will now take Palace’s Europa League spot.
Financial and Sporting Implications
The demotion comes with significant repercussions. It’s estimated to cost the club up to £20 million in lost revenue, due to fewer matches, reduced prize money, and lower exposure in the Conference League compared to the Europa League.
Club Reaction and Possible Next Steps
Club chairman Steve Parish expressed dismay, calling UEFA’s ruling “one of the greatest injustices” in European football and promising to explore further legal recourse, possibly pursuing compensation for financial damages or examining avenues to challenge the decision.
A Brief Timeline
- March 1, 2025: Deadline for resolving MCO conflicts (Textor failed to meet it).
- May 17, 2025: Crystal Palace win FA Cup; Lyon also qualifies for Europa League.
- July 11, 2025: UEFA demotes Palace to Conference League.
- Early August 2025: CAS hearing held in Lausanne.
- August 11, 2025: CAS rejects appeal; Palace placed in Conference League.
Crystal Palace’s attempt to reverse UEFA’s decision through CAS has failed, directing them instead into Europe’s third-tier competition. Beyond the immediate setback lies a broader conversation about the fairness, interpretation, and consistency of UEFA’s multi-club ownership regulations. As the club considers its next legal and competitive moves, the ruling stands clear: rules, as CAS affirmed, are rules.
