Crystal Palace has been officially demoted from the Europa League to the Conference League for the upcoming season, as ruled by Uefa. This decision follows the club's breach of multi-club ownership regulations. American businessman John Textor, who holds a significant stake in Palace, is also the majority owner of Lyon, which has qualified for the Europa League. Uefa's rules prohibit clubs under the same ownership from competing in the same European competition.

Background of the Decision

Uefa's regulations state that clubs owned by the same entity cannot compete in the same European tournament. Palace missed the March 1, 2025 deadline to restructure their ownership, leading to their demotion. The club argued that Textor does not exert decisive influence, but Uefa dismissed this defense.

Impact on Other Clubs

Nottingham Forest, who finished seventh in the Premier League last season, could replace Palace in the Europa League. Forest owner Evangelos Marinakis has avoided similar issues by diluting his control over the club.

Palace's Response

Palace is set to appeal Uefa's decision with the Court of Arbitration for Sport. The club has indicated a strong likelihood of legal action if their Europa League spot is revoked.

Textor's Role

John Textor, who owns Eagle Football, holds a 43% stake in Palace and a 77% stake in Lyon. In June, he agreed to sell his Palace shares to Woody Johnson, owner of the New York Jets, but the deal remains incomplete. Textor also resigned from his leadership position at Lyon to mitigate the conflict.

Lyon's Position

Lyon, having finished sixth in Ligue 1, takes precedence over Palace due to their higher league position. Earlier this week, Lyon successfully appealed against relegation from Ligue 1, which indirectly affected Palace's European prospects.

Conclusion

The demotion of Crystal Palace highlights the complexities of multi-club ownership in European football. The outcome of Palace's appeal will be closely watched, as it could set a precedent for future cases involving similar ownership conflicts.