Crystal Palace’s participation in the Europa League has drawn criticism from the European regulatory body.
In response to rumors that Crystal Palace could not be allowed to play in the Europa League the following season, UEFA has spoken out.
For the first time in the club’s history, Crystal Palace qualified for the 2025–26 Europa League after defeating Manchester City in the FA Cup final in May.
It was later disclosed, though, that the London club might not be allowed to participate in the competition because of rules governing multi-club ownership, since previous main stakeholder John Textor now owns a majority position in Lyon, a French team.
Things took a drastic turn this week when seven-time Ligue 1 winners Lyon were demoted to the second division of French football because of the club’s financial predicament, even though they finished sixth in the top flight this season.
UEFA has finally come forward to provide a comprehensive update on Palace’s possible Europa League participation and to disclose the possible consequences of Lyon’s relegation.
The European governing body acknowledged in a formal statement that Lyon’s agreement to a new deal had temporarily delayed the decision on Crystal Palace’s participation in the Europa League.
It claims that if the French team is demoted due to financial difficulties, they have consented to be barred from Europe for the upcoming season. However, this has not yet been confirmed as Lyon is contesting the official ruling.
Last but not least, the CFCB First Chamber has chosen to delay its evaluation of the multi-club ownership dispute between Olympique Lyonnais and Crystal Palace, according to the statement.
Olympique Lyonnais’ adherence to the settlement agreement reached with the CFCB First Chamber for its violation of the financial sustainability rules is the subject of this postponement.
“Olympique Lyonnais agreed to be excluded from the 2025–26 UEFA club competitions in the event that the French authority (DNCG) confirms the club’s relegation to Ligue 2 as part of this settlement.
“Further details on this multi-club ownership case and this settlement agreement will be communicated in due course.”
Regarding the possible UEFA ban, what has Crystal Palace stated?
The club’s ownership acted swiftly to make sure that Palace would not lose their place in the Europa League the next season as it became apparent that they were in danger of doing so.
American billionaire Textor decided to sell all of his Crystal Palace shares to Woody Johnson, the owner of the New York Jets, in a deal for over £190 million in an effort to allay worries about multi-club ownership.
However, whether doing so will improve Palace’s chances of remaining in the Europa League is still up in the air.
If they are banned, how much might it cost Crystal Palace?
Nottingham Forest, which placed one spot below Palace in the Premier League the previous season, would replace Palace if UEFA decides not to permit them to play in the Europa League the following season.
In this scenario, the Eagles would suffer a severe financial loss as Palace would replace Forest in the Europa Conference League, the third division of European football.
The entire stake for Europa League clubs was €565 million (£483.5 million) last season, although the Conference League’s part was significantly smaller at €285 million (£243.9 million).
Naturally, Palace’s actual earnings would be determined by how well they did in each competition.
What follows?
Palace will have to wait until Lyon’s appeal is resolved, followed by UEFA’s ruling on the multi-club ownership dispute and Lyon’s settlement deal.
However, journalist Martyn Ziegler of The Times claims that it is becoming more and more likely that Palace will have to compete in the Europa Conference League the following season if Lyon wins their appeal against their relegation.
The Premier League team would very certainly contest the ruling at the Court of Arbitration for Sport (CAS) if this were to occur.
However, Nottingham Forest may claim to CAS that UEFA’s regulations have not been adhered to if Palace is allowed to compete in the Europa League.
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