French publication L'Equipe confirmed the club had been successful in their appeal against relegation and are now likely keep their place in the Europa League which then jeopardizes the Eagles spot in the competition.
This is due to the fact that Palace co-owner John Textor also owns a majority stake in Ligue 1 side Lyon and UEFA rules on multi-club ownership prevent two teams with the same ownership from playing in the same competition.
Palace are now likely to be demoted to the Conference League due to a perceived breach of UEFA's multi-club ownership rules according to the Daily Mail. The club missed the March deadline to change their ownership structures to comply with UEFA rules which state:
"To ensure the integrity of the Uefa club competitions, the club must be able to prove that as at 1 March 2025 the… multi-club ownership criteria were met and the club must continue to comply with the criteria from that date until the end of the competition season."
To participate in the Europa League however, the club will have to pay €50M, plus a €12.5M fine due to UEFA's income and expenditure controls. If Lyon cannot pay such huge fees then Palace will remain in the Europa League as they prepare to launch a legal fight against the decision to kick them out of the competition.