Crystal Palace will not be permitted to participate in the Europa League next season, according to UEFA’s confirmation. After defeating Manchester City at Wembley in May, the FA Cup winners were scheduled to compete in UEFA’s secondary European competition. However, the fact that investor John Textor also owns stock in French club Lyon threw a wrench in the plans according to UEFA’s multi-team ownership regulations.
After an appeal, Lyon’s initial relegation to Ligue 2 for noncompliance with financial laws was reversed. They would not have been eligible to play in the Europa League if their relegation had stood. But now that they have been reinstated, it is official that Palace will no longer be in the competition, with Nottingham Forest taking their place.
Palace Relegated to Conference League
Nottingham Forest will play in the Europa League
Palace’s fall to the Conference League was confirmed in a UEFA statement, pending an appeal.
“The French Financial Control Authority’s (DNCG) appellate instance ruled on July 9, 2025, against demoting Olympique Lyonnais to Ligue 2. Olympique Lyonnais will therefore not be disqualified from the 2025–2026 UEFA club championships after the CFCB has evaluated all other pertinent terms contained in the settlement agreement.
As a result, after reviewing the documents that Olympique Lyonnais and Crystal Palace had provided, the CFCB First Chamber came to the conclusion that, as of March 1, 2025, the clubs had violated the multi-club ownership requirements outlined in Article 5.01 of the UEFA Club Competition Regulations.
The CFCB First Chamber made the following decision in light of this and in compliance with the guidelines outlined in Articles 5.02, 5.03, and 5.04 of the UEFA Club Competitions Regulations:
“To accept Olympique Lyonnais’ admission to the 2025/26 UEFA Europa League; and To reject Crystal Palace’s admission to the 2025/26 UEFA Europa League and to accept Crystal Palace’s admission to the 2025/26 UEFA Conference League.”
Palace is anticipated to pursue the matter all the way to the Court of Arbitration of Sport, and they do have the ability to appeal the ruling. Prior to the last qualifying round of each of the three UEFA competitions, CAS has already decided to expedite the process.
Why Palace Have Been Banned From the Europa League
UEFA’s multi-club ownership rules have impacted their inclusion in the competition.
Following their victory over Manchester City at Wembley, Palace’s joy was short-lived as focus swiftly shifted to the complicated case of American investor John Textor. Potential problems arise since his business, Eagle Football Group, owns a 44.9% share in the team.
The firm also owns Lyon, a French team that finished sixth in Ligue 1 and earned a spot in the Europa League. Even though chairman Steve Parish and fellow American investors Josh Harris and Dave Blitzer excluded Crystal Palace from important decisions at Selhurst Park, John Textor’s substantial 44.9% stake nonetheless put the team in violation of UEFA’s rules regarding multi-club ownership.
The problem surfaced after Palace’s May 17 victory at Wembley secured European qualifying, far after UEFA’s deadline of April 30 for settling ownership disputes. The club’s eligibility for continental participation has been affected by this delay.
Parish and the Palace board have responded by quickly requesting an exception, emphasizing that although Textor is a significant shareholder on paper, he actually has little control over how the club is run.
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