UEFA has demoted Premier League club Crystal Palace from the 2025-26 Europa League to the third-tier Conference League due to a breach of multi-club ownership regulations. The decision, announced on Friday, July 11, 2025, stems from American businessman John Textor’s ownership ties to both Crystal Palace and French club Olympique Lyonnais, who also qualified for the Europa League. The ruling has paved the way for Nottingham Forest to replace Palace in the Europa League, while the South London club plans to appeal the decision at the Court of Arbitration for Sport (CAS).
Crystal Palace earned their Europa League berth by winning the FA Cup last season, defeating Manchester City in a memorable final. The victory marked the club’s first major trophy and secured their first European campaign in history. However, UEFA’s Club Financial Control Body (CFCB) determined that Palace and Lyon, both linked through Textor’s Eagle Football Holdings, violated rules prohibiting individuals or entities from exerting “decisive influence” over multiple clubs in the same European competition. Despite Textor’s recent sale of his 43% stake in Palace to fellow American Woody Johnson, the restructuring was not completed by UEFA’s March 1, 2025, deadline, leading to Palace’s demotion.
In an official statement, UEFA declared, “The CFCB First Chamber concluded that the clubs breached, as at 1 March 2025, the multi-club ownership criteria foreseen in Art 5.01 of the UEFA Club Competition Regulations. To accept Olympique Lyonnais’ admission to the 2025/26 UEFA Europa League; and to reject Crystal Palace’s admission to the 2025/26 UEFA Europa League and to accept Crystal Palace’s admission to the 2025/26 UEFA Conference League.” The decision prioritizes Lyon, who finished sixth in Ligue 1, over Palace, who placed 12th in the Premier League despite their cup triumph.
The ruling has sparked outrage among Palace fans and officials, who feel robbed of a hard-earned opportunity. “Palace are going to challenge this and are very angry about what UEFA have done—they feel they earned that place by right, by winning a trophy and beating Manchester City in the FA Cup final,” said Sky Sports chief correspondent Kaveh Solhekol. The club’s appeal to CAS is expected to be fast-tracked, as Conference League qualifying playoffs loom in just over a month.
The demotion carries significant financial implications, with the Europa League offering up to 20 million euros more in prize money than the Conference League. Palace’s drop also means they must navigate a qualifying round to reach the Conference League’s League Phase, unlike the direct entry they would have enjoyed in the Europa League. Meanwhile, Nottingham Forest, who finished seventh in the Premier League and were initially set for the Conference League, will now step up to the Europa League, pending the outcome of Palace’s appeal.
The controversy has cast a shadow over Palace’s landmark achievement. John Textor, who also owns stakes in Brazilian club Botafogo and Belgium’s Molenbeek, has faced increasing scrutiny for his multi-club ownership model. Lyon’s recent reprieve from relegation to Ligue 2, following an appeal to the French financial control authority (DNCG) on July 9, 2025, further complicated matters, as it confirmed their eligibility for the Europa League and triggered UEFA’s ruling against Palace.