Crystal Palace Stripped of Europa League Spot Over Ownership Conflict With Lyon

Eagles drop to Conference League; Nottingham Forest expected to take their place
Crystal Palace has been disqualified from the UEFA Europa League due to ownership conflicts involving French club Lyon, UEFA confirmed this week. Despite winning the FA Cup and earning a historic spot in the Europa League, the Eagles will now compete in the UEFA Conference League a major blow to the club’s European ambitions.
UEFA Cites Dual Ownership Violation
The governing body of European football ruled that Palace’s participation in the Europa League would violate rules that prohibit two clubs with the same owner from playing in the same European competition. Both Crystal Palace and Olympique Lyonnais were controlled by American businessman John Textor, who also owns Brazilian side Botafogo.
“This decision can be appealed to the Court of Arbitration for Sport in accordance with Articles 62 and 63 of the UEFA Statutes,” UEFA stated.
The rules are in place to preserve competitive integrity and prevent conflicts of interest between clubs with shared ownership.
Palace to Appeal to CAS
Crystal Palace has announced its intent to appeal the ruling to the Court of Arbitration for Sport (CAS). UEFA, however, will proceed as planned and await the appeal’s outcome.
The club is arguing that Textor officially sold his shares in the English club on June 22 to Woody Johnson, owner of the New York Jets (NFL). Despite this divestment, UEFA concluded that the sale came too late in the registration process to reverse its impact.
European Shake-Up: Nottingham Forest Set to Benefit
As a result of Palace’s demotion, Nottingham Forest who originally qualified for the Conference League is now expected to move up to the Europa League. UEFA has not made an official announcement yet, choosing instead to wait for the CAS verdict before confirming final competition entries.
This reshuffle comes just weeks after Palace’s historic FA Cup victory over Manchester City, which had secured their first-ever Europa League berth.
Background: Lyon’s Role in UEFA’s Decision
UEFA had delayed its final ruling to await the outcome of Lyon’s appeal against relegation from Ligue 1 due to financial irregularities. With Lyon successfully avoiding relegation, both they and Palace remained eligible for European competition triggering the ownership conflict.
UEFA ultimately prioritized Lyon’s status, resulting in Palace’s exclusion despite the club’s change in ownership.