UEFA Demotes Crystal Palace to Conference League Over Multi-Club Ownership Conflict

Crystal Palace will not feature in next season’s Europa League after UEFA ruled the club ineligible due to a breach of its multi-club ownership regulations. Instead, the Eagles have been reassigned to the Europa Conference League.

The decision centres on the influence of American investor John Textor, who holds a 43% stake in Crystal Palace and is also the majority shareholder at French side Lyon—another club that qualified for the Europa League.

Due to Lyon’s higher domestic finish—sixth in Ligue 1 compared to Palace’s 12th in the Premier League—UEFA has granted the French side precedence in the competition. Palace had secured European qualification by lifting the FA Cup, marking what would have been their debut in continental football.

Ownership Conflict Costs Palace Europa League Spot

Under UEFA’s multi-club ownership rules, no two clubs with significant shared ownership or influence can compete in the same European competition. Palace missed a March 1, 2025 deadline to provide evidence of restructuring that would satisfy those conditions.

The London club argued that Textor does not exercise decisive influence at Selhurst Park, but UEFA rejected that defence. Palace have confirmed plans to challenge the ruling at the Court of Arbitration for Sport (CAS).

Textor, for his part, took steps to limit his involvement, including resigning from his position at Lyon and agreeing to sell his Palace shares to New York Jets owner Woody Johnson. However, that sale has yet to be finalised.

UEFA initially postponed its ruling in late June as developments unfolded, including Lyon’s successful appeal against a financial relegation from Ligue 1. Had that decision gone the other way, Lyon had agreed to withdraw from European competition, which would have allowed Palace to retain their Europa League place.

Forest Stand By as Potential Beneficiaries

Nottingham Forest, who finished seventh in the Premier League, could now step into the Europa League spot vacated by Palace. Forest had earlier sought clarification from UEFA, aware that Palace’s situation could open the door for their return to European competition.

Forest’s own ownership structure came under similar scrutiny, with Evangelos Marinakis—who also owns Olympiakos—reducing his control at the English club to comply with UEFA’s regulations.

Aston Villa, who finished sixth in the Premier League, are the only other English club to secure a Europa League spot next season.

Palace’s fairytale FA Cup run and historic European qualification have now been overshadowed by uncertainty and legal wrangling, with the club vowing to fight to reclaim its place on the bigger European stage.