Crystal Palace’s Europa League hopes have been dashed after UEFA ruled the club’s ties to Lyon breached multi-club ownership rules, forcing a drop to the Conference League.
Palace had earned their European ticket the hard way, stunning Manchester City in the FA Cup final. But just a week later, PSG’s Coupe de France win elevated Lyon to the Europa League, triggering UEFA’s conflict alarm.
Both clubs are linked through John Textor’s Eagle Football Holdings. He holds 77% of Lyon and 43.9% of Palace. UEFA rules cap dual ownership at 30% if clubs play in the same European competition.
Palace insisted Textor doesn’t control club decisions and pointed to a signed agreement for Woody Johnson to buy out Eagle Football’s stake. But that sale is still pending Premier League approval.
As a result, Palace have been relegated to the Conference League playoff round. Nottingham Forest will move up to the Europa League, unless Palace overturn the decision at the Court of Arbitration for Sport.
This ruling cuts deep for Palace. The Europa League offers far greater financial rewards and guaranteed group-stage games, unlike the riskier qualifier path in the Conference League.
UEFA’s own rules add to the confusion. Domestic cup winners are meant to take priority over league finishers, yet Lyon’s sixth-place Ligue 1 finish trumped Palace’s FA Cup triumph.
The situation became even messier when Lyon were briefly relegated to Ligue 2 for financial issues, only to win an appeal that secured their European spot again.
UEFA allowed other clubs with shared owners, like Girona and Man City, to compete last year using blind trust structures. But that workaround no longer applies, with stricter rules and earlier deadlines introduced this season.
Palace must now fight in court if they want justice, and a place back among Europe’s elite.
