UEFA demotes Palace to Conference League over ownership issues

UEFA demotes Crystal Palace to Conference League over multi-club ownership; Forest promoted to Europa League pending Palace's CAS appeal.

Crystal Palace will have their day in court but for now, their Europa League spot has been handed to Nottingham Forest. (Photo credit: BBC)

FA Cup Champions Crystal Palace has been demoted from the Europa League to the Conference League after UEFA's Club Financial Control Body (CFCB) ruled the Premier League club was too closely linked to Lyon.

Palace are now expected to take the case to the Court of Arbitration for Sport, as has been the case with the other clubs excluded this summer. You might want to believe they have a case, considering Manchester City and Girona bypassed this law last season.

Nottingham Forest, who were due to enter the Conference League in the playoff round next month, will be promoted to the Europa League subject to that CAS appeal. There’s an interesting twist to this, as players who have left the club might wonder why they did now that they have Europa football.

The ruling means Palace are not guaranteed to play in the League Phase, as they must play a qualifier, while the financial rewards are far higher from playing in the Europa League.

Palace qualified for the Europa League by beating Manchester City in the FA Cup final, but seven days later PSG's victory in the French Cup final meant Lyon was promoted from the Conference League to also play in the Europa League.

This immediately created a concern with UEFA's multi-club ownership rules, which forbid any party from having a significant interest in more than one club in the same competition.

John Textor, the majority owner and chairman of Eagle Football Holdings, has a 77% stake in Lyon but also owns 43.9% of Palace. UEFA's regulations take issue with any dual holding above 30%, though Palace argued that Textor had no role in the running of the Premier League club. 

Palace reiterated last month that New York Jets co-owner Woody Johnson had signed a legally binding agreement to buy Eagle Football Holding's stake in Palace, subject to approval from the Premier League. 

However, Palace had missed the March deadline to comply with the multi-club ownership rules.

"Honestly, I am stunned. We did everything possible to separate from the club, as UEFA would ask, with a sale process that began before the deadline and a sale that will occur well before the draw," Textor told Reuters.

"Now we have sold out of a club that I love to help Palace fans continue this dream year, only to have another off-the-pitch decision lay waste to an historic sporting victory."