Crystal Palace have been demoted from the Europa League to the UEFA Conference League in a controversial ruling over multi-club ownership, UEFA confirmed on Friday. The decision comes despite Palace having qualified for the Europa League by winning the FA Cup last season.
Olympique Lyonnais, who also qualified for the Europa League by finishing sixth in Ligue 1, have retained their place in the competition. The decision was made after UEFA’s Club Financial Control Body (CFCB) reviewed the ownership structures of both clubs and found they breached the governing body’s multi-club ownership rules as of 1 March 2025.
Both Crystal Palace and Lyon are linked through Eagle Football Group, which is the majority owner of Lyon and was, until recently, also a controlling stakeholder in Palace. The group is chaired by American businessman John Textor, who has now resigned from the board of Lyon. Michele Kang has since been appointed as Lyon’s new chairwoman and president in an effort to comply with UEFA regulations.
UEFA stated that since both clubs had qualified for the same competition, Lyon retained their place by virtue of finishing higher in their domestic league—sixth in Ligue 1, compared to Palace’s 12th-place finish in the Premier League.
Palace, who have already announced a legally binding agreement for New York Jets co-owner Robert “Woody” Johnson to purchase Eagle Football’s stake in the club—pending Premier League approval—were found to have missed the March 1st deadline for ownership compliance. The sale is set to complete before the European competition draw, but UEFA deemed the delay in resolving the ownership issue as a breach of its regulations.
John Textor expressed frustration at the decision, calling it a “terrible injustice.”
“Honestly, I am stunned,” he told Reuters. “We did everything possible to separate from the club, as UEFA would ask, with a sale process that began before the deadline. Now we’ve sold out of a club that I love, to help Palace fans continue this dream year, only to have another off-the-pitch decision lay waste to an historic sporting victory.”
Palace chairman Steve Parish also condemned the ruling, describing it as a blow not only to the club but to the integrity of the game.
“We’re devastated. It’s a bad day for football. It’s a terrible injustice,” Parish told Sky Sports. “Everyone knows we’re not part of a multi-club set-up. We’re caught up in a rule that wasn’t put there for us. This is a ludicrous decision.”
UEFA’s regulations prohibit clubs owned or controlled by the same individual or group from participating in the same European competition, in order to protect the integrity of matches. Although Palace are in the process of severing their ties with Eagle Football, UEFA determined the steps were not completed in time.
Lyon, who had previously been threatened with relegation to Ligue 2 due to financial concerns, were cleared earlier this week by the French football watchdog DNCG’s appeals committee, paving the way for UEFA’s ruling on European eligibility.
Crystal Palace can still appeal the decision to the Court of Arbitration for Sport (CAS). If the ruling is upheld, Nottingham Forest—who finished seventh in the Premier League and had originally qualified for the Conference League—may be elevated to the Europa League if they meet UEFA’s entry criteria.
With fifth-placed Aston Villa also in the Europa League, the reshuffle could mark a dramatic turn of events in English clubs’ participation in European competition for the 2025–26 season.