Crystal Palace Demoted to Conference League Over Multi-Club Ownership Rules, Lyon Retains Europa League Spot

Crystal Palace Demoted to Conference League Over Multi-Club Ownership Rules, Lyon Retains Europa League Spot

by Reuters News Service

UEFA has ruled that Crystal Palace must drop from the Europa League to the third-tier Europa Conference League due to multi-club ownership conflicts, while Olympique Lyonnais will retain its place in the competition.

The decision, announced Friday, follows an investigation into the shared ownership ties between the two clubs under Eagle Football Group.

Palace had earned a Europa League spot by winning last seasonโ€™s FA Cup, while Lyon qualified via a sixth-place finish in Ligue 1. However, UEFAโ€™s Club Financial Control Body (CFCB) determined that both clubs violated ownership rules as of March 1, 2025, due to Eagle Footballโ€™s majority stake in Lyon and its chairman John Textorโ€™s controlling interest in Palace. Under UEFA regulations, only one club could remain in the same competition, with Lyon keeping its place due to its higher domestic league finish (6th in Ligue 1 vs. Palaceโ€™s 12th in the Premier League).

Textor, who has since resigned from Lyonโ€™s board, expressed shock at the decision, stating that a sale process for Palace had already begun before UEFAโ€™s deadline. New York Jets co-owner Woody Johnson has agreed to buy Eagle Footballโ€™s stake in Palace, pending Premier League approval, but the transaction was not completed in time to meet UEFAโ€™s compliance cutoff.

Palace “Devastated,” Threatens Appeal

Crystal Palace chairman Steve Parish called the ruling a “terrible injustice,” vowing to challenge it at the Court of Arbitration for Sport (CAS). “Weโ€™ve been locked out of a European competition on the most ridiculous technicality,” he said, arguing that the club was unfairly caught in a rule not intended for its situation.

If upheld, the decision could open the door for Nottingham Forestโ€”who finished seventh in the Premier Leagueโ€”to enter the Europa League, assuming they meet UEFAโ€™s licensing criteria.

Lyonโ€™s Financial Reprieve

The ruling comes days after Lyon avoided relegation to Ligue 2 when Franceโ€™s financial watchdog, the DNCG, overturned its earlier demotion order. UEFA had delayed its ownership verdict pending that outcome.

UEFAโ€™s multi-club ownership rules prohibit individuals or entities from holding decisive influence over multiple clubs in its competitions. The governing body has tightened enforcement in recent years amid growing concerns over intertwined club investments.

For Palace, the decision dashes hopes of a historic European campaign, while Lyon prepares for Europa League footballโ€”a bittersweet resolution to a saga highlighting the increasing complexities of modern football ownership.

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