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The position held by the Eagles, secured by clinching the FA Cup in the previous season, faces challenges due to Uefa's regulations on multi-club ownership. These rules prohibit teams that share ownership from participating in the same European tournaments.
Co-owner John Textor, who also has a stake in the French team Lyon, has decided to sell his 44% share in Palace to support their situation.
A ruling regarding Palace's involvement was anticipated to be announced on Monday.
Nonetheless, Lyon faced relegation to Ligue 2 last week due to financial difficulties highlighted by the French football governing body.
The club is contesting this ruling, but if their appeal fails, they have consented to forfeit their place in the Europa League.
Consequently, Uefa has chosen to postpone its decision about Palace's qualification until the appeal's results are known.
It remains unclear how much time Lyon's appeal process will require, with Uefa mentioning that more information will be provided in "due course."
If Palace is permitted to participate, they would enter the group stage, which is set to commence in September.
Textor is in the midst of transferring his share of Palace to Woody Johnson, the owner of the New York Jets.
The 59-year-old American stepped down from his position at Lyon on Monday, opting to distance himself from the club's daily operations, where he holds a 77% ownership.
In October of the previous year, Textor’s Eagle Football Group revealed that Lyon was burdened with debts amounting to £422 million.
The club described their demotion to Ligue 2 as "incomprehensible" and stated that they would challenge the ruling.
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