Crystal Palace’s European dream has suffered a crushing blow after the Court of Arbitration for Sport (CAS) rejected their appeal against demotion from the Europa League. Instead of competing in Europe’s second-tier competition, the FA Cup holders will now be forced to play in the Europa Conference League this season, a bitter setback just days after their thrilling Community Shield victory over Liverpool at Wembley.
The ruling also cements Nottingham Forest’s place in the Europa League, with Forest stepping into the slot Palace believed they had secured on merit. Palace had booked their ticket to the competition by lifting the FA Cup last season, but UEFA’s multi-club ownership rules have come back to haunt them. The governing body penalized the South London club after finding they breached regulations designed to prevent conflicts of interest in European competitions.
At the centre of the storm is American businessman John Textor, who until June owned a 43% stake in Crystal Palace while also serving as the majority shareholder of French club Lyon—another team that had qualified for the Europa League. UEFA regulations strictly prohibit two clubs under the same significant ownership or influence from competing in the same European competition. Palace were required to restructure their ownership by March 1, 2025, but missed the deadline.
Despite Textor agreeing to sell his stake to New York Jets owner Woody Johnson in June, UEFA deemed the changes too late to meet their compliance requirements. In July, Palace launched an appeal to CAS against UEFA, Lyon, and Nottingham Forest, arguing that Textor did not exert decisive influence over the club and that they were treated more harshly than their European rivals. However, the arbitration panel rejected every element of Palace’s case, siding fully with UEFA’s position.
The verdict leaves Palace frustrated and staring at a season without the prestige and financial rewards the Europa League offers. From a sporting perspective, the drop to the Conference League is a significant downgrade, especially for a team that had fought its way to FA Cup glory and dreamed of testing itself against some of Europe’s most established clubs. Instead, they now prepare for a play-off round clash later this month against either Norway’s Fredrikstad or Denmark’s Midtjylland.
UEFA has stood firm in defending its multi-club ownership rules, stating that such regulations are vital to safeguarding the integrity of its competitions. The rulebook makes it clear: any club must prove it is not “simultaneously involved in any capacity whatsoever in the management, administration, and/or sporting performance of more than one club participating in a UEFA club competition.”
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Interestingly, Nottingham Forest owner Evangelos Marinakis, who also owns Greek champions Olympiakos, managed to sidestep similar issues by reducing his control of Forest ahead of UEFA’s assessment date in April. Palace, however, failed to act in time, leaving them vulnerable to the sanction that has now been upheld.
For manager Oliver Glasner and his squad, the focus must now shift to making the most of the Conference League. But there’s no denying that the demotion casts a shadow over what was supposed to be a landmark season in the club’s history. Fans who had been dreaming of trips to iconic European stadiums will now have to settle for less glamorous fixtures, while the club must grapple with the reputational hit and the loss of potential revenue.
Crystal Palace’s misstep serves as a cautionary tale for clubs navigating the increasingly complex world of multi-club ownership. In European football’s high-stakes environment, even success on the pitch can be undone by governance rules off it. For now, Palace must regroup, rebuild, and try to turn their disappointment into motivation as they embark on an unexpected journey in UEFA’s third-tier competition.
