Crystal Palace Demoted from Europa League Over UEFA Multi-Club Ownership Rules

Crystal Palace have been officially demoted from the UEFA Europa League to the Europa Conference League for the 2025/26 season, following a ruling by UEFA related to multi-club ownership regulations. The club has confirmed it will appeal the decision, with reports emerging from Sky Sports and The Guardian.

The issue stems from Palace’s majority stakeholder, John Textor, who also holds significant ownership in French club Olympique Lyonnais, another team that qualified for the Europa League. UEFA’s rules strictly prohibit two clubs with shared ownership from competing in the same European competition to avoid potential conflicts of interest.

Despite Textor’s efforts to sell his stake in Lyon and distance himself from operational control, UEFA determined that the changes occurred after its March 1 eligibility deadline, making Palace ineligible to participate in the same tier as Lyon. As a result, Nottingham Forest are expected to take Palace’s spot in the Europa League, while the South London club will compete in the Conference League instead.

Textor expressed frustration, stating he never held “decisive influence” at Palace and had acted in good faith to resolve the situation. He described UEFA’s ruling as a “devastating blow” to the club, especially after its impressive FA Cup victory that secured European qualification.

Crystal Palace officials are now preparing to take their case to the Court of Arbitration for Sport (CAS), arguing the punishment is excessive and not reflective of the true nature of their ownership structure.

While UEFA has yet to publicly respond to the appeal, the case is likely to set a significant precedent as multi-club ownership becomes increasingly common across European football.