Crystal Palace Demoted to UEFA Conference League: Nottingham Forest Takes Europa League Spot Amid Ownership Controversy

UEFA Ruling Sends Shockwaves Through English Football

Crystal Palace has been demoted from the UEFA Europa League to the UEFA Conference League after a landmark ruling by UEFA’s Club Financial Control Body (CFCB), igniting outrage among fans and club officials. The decision, announced on July 11, 2025, pivots on UEFA’s multi-club ownership regulations and has immediate consequences for both Crystal Palace and Nottingham Forest, the latter now poised to take Palace’s place in the more lucrative Europa League—pending the outcome of a likely appeal.

The Heart of the Controversy: Multi-Club Ownership Rules

At the core of UEFA’s decision is its strict policy on multi-club ownership, which prohibits any individual or entity from holding a “significant interest” (defined as more than 30%) in more than one club participating in the same European competition. This rule is designed to protect the integrity and independence of UEFA tournaments, ensuring that no club can exert undue influence over another within the same competition.

John Textor, an American entrepreneur, is the majority owner of Eagle Football Holdings, which controls 77% of French club Lyon and 43.9% of Crystal Palace. Both clubs qualified for the 2025/26 UEFA Europa League—Lyon by finishing sixth in Ligue 1 and Palace by winning their first-ever major trophy, the FA Cup, in a historic victory over Manchester City.

UEFA’s regulations stipulate that if two clubs under the same ownership qualify for the same competition, only the club with the higher domestic finish—Lyon, in this case—can participate in the Europa League. Palace, therefore, was demoted to the third-tier Conference League.

The Timeline: How the Situation Unfolded

• May 2025: Crystal Palace secures a Europa League spot by winning the FA Cup, with Eberechi Eze scoring the decisive goal against Manchester City.
• June 2025: UEFA’s CFCB begins investigating the ownership structure of Palace and Lyon after both clubs qualify for the Europa League.
• July 2025: Lyon’s participation in the Europa League is confirmed after a successful appeal against their financial relegation in France. UEFA then finalizes its ruling, demoting Palace to the Conference League and confirming Lyon’s Europa League place.
• July 11, 2025: The official announcement is made, triggering immediate backlash from Crystal Palace and their supporters.

Economic Impact: Financial Stakes and Club Futures

The financial ramifications of this decision are significant. The UEFA Europa League offers considerably higher prize money, broadcasting revenue, and sponsorship opportunities compared to the Conference League. For a club like Crystal Palace, which has only recently tasted European football, this demotion is a major setback in both sporting and economic terms.

• Europa League group stage participation can yield tens of millions of euros in revenue, while the Conference League offers a fraction of that sum.
• The loss of exposure on the European stage may also impact Palace’s ability to attract top talent and negotiate favorable commercial deals.

Nottingham Forest, in contrast, stands to benefit from an unexpected windfall. Initially set to enter the Conference League playoff round after finishing seventh in the Premier League, Forest will now step up to the Europa League—pending any successful appeal by Palace.

Historical Context: Echoes of Past Injustices

This is not the first time Crystal Palace has been denied a European adventure under controversial circumstances. In the 1990-91 season, Palace finished third in England’s top flight, only to miss out on European competition due to the lingering ban on English clubs following the Heysel disaster. Liverpool’s late reinstatement meant Palace’s European dreams were dashed, a bitter memory now echoed in the current situation.

Regional Comparisons: Multi-Club Ownership Across Europe

The issue of multi-club ownership is not unique to Crystal Palace and Lyon. Recent years have seen UEFA grapple with similar cases involving Manchester City and Girona, as well as Manchester United and Nice. In July 2024, UEFA allowed these pairs to compete in the same European tournaments after extensive restructuring and assurances of operational independence.

However, the Palace-Lyon case underscores the continued complexity and controversy surrounding multi-club ownership, especially as more investors seek stakes in multiple European clubs. UEFA’s willingness to enforce its rules strictly in this instance has set a precedent that could have far-reaching implications for club ownership models across the continent.

Public and Club Reaction: Outrage and Appeals

Crystal Palace chairman Steve Parish has been vocal in his condemnation of UEFA’s decision, calling it “the biggest injustice in the history of football” and a “dark day for football.” Parish insists that Palace’s exclusion is the result of an “absurd technicality” and has vowed to appeal the ruling at the Court of Arbitration for Sport (CAS).

“We’re heartbroken. This is a dark day for football. It’s an appalling injustice. I truly believe that no one wants this outcome, not even UEFA. We have been barred from a European competition over an absurd technicality. Fans from every club should feel disheartened for us.” — Steve Parish, Crystal Palace Chairman

The club’s legal team is preparing to challenge the decision, arguing that John Textor had no operational control over Palace and that steps were already underway to transfer his stake to Woody Johnson, owner of the New York Jets. However, this transfer was initiated after UEFA’s March 1 deadline for resolving multi-club ownership issues and remains subject to Premier League approval—a process expected to take several months.

What Happens Next: The Appeal Process and Potential Outcomes

Crystal Palace’s immediate recourse is to appeal to the Court of Arbitration for Sport. If successful, the club could be reinstated in the Europa League, displacing Nottingham Forest. However, the appeal process is complex, and UEFA’s rules have historically been upheld in similar cases.

In the meantime, Palace must prepare for a Conference League qualifier, while Forest readies itself for a Europa League campaign—both clubs facing uncertain futures as the legal battle unfolds.

Broader Implications: The Future of European Club Football

The Palace-Lyon case is a stark reminder of the growing influence of multi-club ownership in European football and the regulatory challenges it presents. As more investors seek to build global football portfolios, UEFA’s ability to enforce its rules and maintain the integrity of its competitions will be tested repeatedly.

For now, the demotion of Crystal Palace and the elevation of Nottingham Forest serve as a cautionary tale for clubs and investors alike: compliance with UEFA’s ownership regulations is non-negotiable, and the consequences for failing to do so can be both swift and severe.

Conclusion

Crystal Palace’s demotion from the Europa League to the Conference League marks a dramatic chapter in the club’s history and a pivotal moment for European football governance. As the appeal process begins, the football world watches closely, aware that the outcome could shape the future of multi-club ownership and the competitive landscape of UEFA competitions for years to come.