Crystal Palace have been relegated to the third-tier UEFA Conference League despite earning a Europa League spot, following a ruling by UEFA’s Club Financial Control Body (CFCB) over a breach of multi-club ownership regulations. In a surprising twist, Olympique Lyonnais will retain their place in the Europa League, despite being entangled in the same ownership structure.
Palace had secured Europa League qualification after lifting the FA Cup last season. Lyon, on the other hand, clinched their spot by finishing sixth in Ligue 1. However, both clubs were found to be in breach of UEFA’s rules as of March 1, 2025, due to overlapping control via the Eagle Football Group.
Eagle Football Group owns a majority stake in Lyon and previously held a controlling interest in Palace, with John Textor acting as chairman for both. To resolve the conflict, Textor resigned from Lyon’s board, and Michele Kang was appointed chairwoman. Palace also initiated a sale of the controlling stake to New York Jets co-owner Robert “Woody” Johnson before the UEFA deadline, but the transaction wasn’t completed in time.
UEFA determined that since both clubs qualified for the same European competition, priority would go to the one with the superior league finish. Lyon’s sixth-place Ligue 1 finish outpaced Palace’s 12th in the Premier League, leading to Palace’s demotion.
Palace chairman Steve Parish expressed outrage over the decision, calling it “a terrible injustice” and arguing that the rule was never intended for their case. He emphasized the club’s efforts to resolve the ownership conflict well before UEFA’s draw and criticized the governing body for acting on what he described as “a ridiculous technicality.”
John Textor echoed this sentiment, saying he was “stunned” by the outcome. He insisted that the club had fully committed to separating its ownership structure before the deadline and that the completed sale would have resolved any conflict well ahead of UEFA’s official proceedings.
UEFA’s rules strictly prohibit any person or group from having control or influence over multiple clubs participating in its competitions. This includes holding shares, voting rights, or executive authority that could create a conflict of interest or undermine competition integrity.
Palace now have the option to appeal the ruling at the Court of Arbitration for Sport (CAS). If the decision is not overturned, Nottingham Forest—who finished seventh in the Premier League—could be promoted to the Europa League, provided they meet UEFA’s admission criteria. Forest had initially qualified for the Conference League, while Aston Villa and Palace had secured the two Europa League spots from England.
Palace’s setback marks a dramatic shift in their otherwise successful season, and the situation underscores the growing complications surrounding multi-club ownership models in European football.
