UEFA has demoted Palace to the Conference League, the third tier of European football, after the side breached its multi-club ownership rules. This comes after owner John Textor owns both Lyon and Palace, which, under UEFA rules means both clubs cannot compete in the same competition.
A March 1st deadline for resolving multi-club ownership issues was not met and even though Textor recently agreed a deal to sell his Palace shares to the US billionaire Woody Johnson, it was too late as his involvement in the club was already apparent.
UEFA said in a statement that they have decided “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”.
Earlier this week, Lyon won their appeal against relegation from Ligue 1 after they were demoted for financial reasons which had ultimately been the final blow for Palace who were then destined to drop to the Conference League.
The club had argued that Textor did not have a decisive influence at Selhurst Park but UEFA clearly thinks otherwise and despite many club officials attending a meeting at UEFA's headquarters in Nyon their efforts have been in vain.
Lyon qualified for the Europa League alongside Palace and as Lyon's higher domestic standing gave them priority for the Europa League slots, it means they have gotten priority. Nottingham Forest, who finished seventh in the Premier League last season, are expected to replace the FA Cup winners as fury spouts from fans online over the decision that can be appealed.
"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," said a statement from European football's governing body.