Crystal Palace’s qualification for the upcoming Europa League is under serious threat due to multiclub ownership rules, following Lyon’s successful appeal against relegation from Ligue 1. The French club has now been reinstated in the top flight, a development that reignites UEFA scrutiny over their connection to Palace.
The core of the issue lies with American businessman John Textor, who owns a 43% stake in Crystal Palace while also being the majority shareholder in Lyon. UEFA regulations prohibit two clubs with shared ownership from participating in the same European competition. While Palace had initially expected a straightforward entry into the Europa League after winning the FA Cup, the situation is now clouded by governance concerns.
The South London club remains hopeful, having presented its case in Switzerland last month, arguing that Textor does not exert control over day-to-day operations at Selhurst Park. Furthermore, it was announced that Textor stepped down from executive roles at Lyon last week, potentially as a measure to ease regulatory concerns. However, UEFA’s decision is pending, and the delay was reportedly due to the need for clarity on Lyon’s domestic status.
Earlier this year, Lyon were relegated from Ligue 1 over financial breaches related to player spending. That decision has now been overturned by the DNCG, the French football authority responsible for monitoring club finances. Their reinstatement adds complexity to UEFA’s decision-making, given both clubs now qualify for European competition under the same owner.
In past seasons, similar cases involving Manchester United and Nice, as well as Manchester City and Girona, were resolved by appointing independent trustees to oversee operations of one of the clubs. These arrangements also required directors to resign from boards, clubs to avoid player transfers and shared commercial arrangements, and prevented any integration of scouting or data infrastructure.
Crystal Palace, however, missed a crucial UEFA deadline to register their club under an independent trust, mainly because their FA Cup triumph was unexpected at that stage of the season. This administrative lapse could now cost them their Europa League spot.
In the event that Palace are disqualified, they would drop down to the Conference League, but that brings another complication. Danish side Brondby, who are already qualified for the Conference League, are partly owned by David Blitzer—another minority shareholder at Palace. According to UEFA’s priority rules, Brondby’s league qualification takes precedence over Palace’s FA Cup-based entry, which could leave the English club without any European football.
Should that happen, Nottingham Forest, who finished eighth in the Premier League, would move up to claim the Europa League spot, while Palace’s fierce rivals Brighton—ninth in the table—would be handed the Conference League berth.
The situation remains tense and without precedent. UEFA’s final decision will determine not just Palace’s European future, but also have a ripple effect across the Premier League and continental competition entries.
