Crystal Palace have been demoted to the UEFA Conference League despite winning the FA Cup, with UEFA citing multi-club ownership violations involving Lyon. Here’s what it means for Palace, Lyon, and the wider European football landscape.
Crystal Palace Demoted from Europa League as UEFA Sides with Lyon in Ownership Dispute
Crystal Palace’s long-awaited return to European football has taken an unexpected turn. Despite lifting the FA Cup and securing what should have been a Europa League berth, the Eagles have been demoted to the UEFA Conference League due to a breach of multi-club ownership rules.
UEFA confirmed the decision on Friday following an investigation into the links between Palace and French side Olympique Lyonnais. The key issue stems from their shared ties to Eagle Football Group, whose chairman, John Textor, has held major stakes in both clubs.
Lyon, who finished sixth in Ligue 1, were also initially under scrutiny. But after their financial demotion to Ligue 2 was overturned by France’s DNCG appeals committee, UEFA’s Club Financial Control Body (CFCB) moved forward with the ownership assessment. The ruling was clear: both clubs were in breach of the multi-club ownership criteria as of March 1, 2025.
In such scenarios, UEFA applies a ranking hierarchy to determine which club retains its place in European competition. Since Lyon finished higher in their domestic league than Palace’s 12th-place Premier League finish, the French side were awarded the Europa League slot.
Palace’s Dream Season Undone by Ownership Structure
On the pitch, Crystal Palace had achieved something special. Their FA Cup triumph secured a return to continental competition and marked the high point of a season that reenergized Selhurst Park. But that joy has now been clouded by boardroom entanglements.
John Textor, who played a central role in the club’s revival, voiced his frustration after UEFA’s ruling. “Honestly, I am stunned,” he told Reuters. “We did everything possible to separate from the club, with a sale process that began before the deadline… only to have another off-the-pitch decision lay waste to a historic sporting victory.”
Textor resigned from Lyon’s board earlier this year, and Michele Kang has since been installed as chairwoman and president of the French club. Meanwhile, Palace announced in June that New York Jets co-owner Woody Johnson had agreed to purchase Eagle Football Holding’s stake, pending Premier League approval. But the transaction came too late for UEFA, with the key March 1 deadline already missed.
What the Rules Say—and Who Benefits
UEFA’s multi-club ownership rules are designed to preserve the integrity of its competitions. No individual or entity is permitted to exert decisive influence over more than one club involved in UEFA tournaments. The overlap between Eagle Football’s interests in both Lyon and Palace was deemed to violate those terms.
With Palace bumped down to the Conference League, there could be further ramifications. Nottingham Forest, who finished seventh in the Premier League and initially qualified for the Conference League, may now be elevated to the Europa League—provided they meet UEFA’s eligibility standards.
This situation also highlights a growing challenge for UEFA as multi-club ownership models expand across Europe. From Red Bull to City Football Group, the convergence of business and football is accelerating. Palace’s misfortune might now serve as a cautionary tale for clubs navigating similar arrangements.
No Guarantees for the Future
Palace can still challenge the ruling at the Court of Arbitration for Sport (CAS), but time is running out. With UEFA’s competition draws fast approaching, any reversal would need to happen quickly. For now, the Eagles must prepare for a Conference League campaign instead of a Europa League journey.
It’s a bitter outcome for a club that earned its spot the hard way—on the pitch. But in the modern game, off-field structure matters just as much as on-field performance. Palace fans can only hope the club’s new ownership path brings both clarity and compliance.
