Palace lose appeal against demotion from Europa League

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Crystal Palace has lost their appeal regarding their relegation from the Europa League, resulting in their participation in the Conference League this season.

The decision made by the Court of Arbitration for Sport (CAS) also solidifies Nottingham Forest's position in the Europa League, as they will take Palace’s spot.

This development comes just a day following Crystal Palace's victory over Liverpool in the Community Shield, which they won via penalties at Wembley.

The Eagles secured their place in the Europa League by winning the FA Cup last season; however, they faced sanctions from UEFA for violating rules related to multi-club ownership.

John Textor, an American businessman, previously held a 43% share in the club until he sold it in June and concurrently is the majority owner of Lyon, who have also qualified for the Europa League.

Palace had a deadline of March 1, 2025, to present UEFA with evidence of restructuring concerning multi-club ownership, but they failed to meet this deadline.

In July, Palace lodged an appeal to CAS against the punishment imposed by UEFA, as well as against Lyon and Nottingham Forest.

The CAS ruling stated:

The regulations are explicit and do not allow leniency for clubs that are non-compliant as of the assessment date, as claimed by Palace.

At the time of UEFA's assessment date, Textor still maintained significant influence over both clubs.

The panel also rejected Palace’s assertion that they had been unfairly treated in comparison with Nottingham Forest and Lyon.

According to UEFA regulations, clubs that share ownership, to a specified degree of influence, by the same individual or entity are prohibited from competing in the same European tournament.

Palace contended that Textor does not exert any significant influence at the club, but UEFA dismissed the Premier League club’s argument.

In the Conference League play-off round later this month, Palace will compete against either Fredrikstad from Norway or Denmark's Midtjylland.

How did we arrive at this situation?

May 17 - Palace triumphed over Manchester City in the FA Cup final, securing a Europa League spot.

June 10 - Forest raised concerns regarding Palace's Europa League eligibility and sought clarification from UEFA.

June 23 - Textor sold his 43% stake in Palace to Woody Johnson, the owner of the New York Jets.

June 30 - Textor stepped down from his leadership role on Lyon's board.

July 11 - UEFA decided that Palace should be demoted to the Conference League.

July 22 - Palace filed an appeal to CAS against their Europa League demotion.

August 8 - The CAS appeal hearing commenced.

How did Forest evade penalties?

UEFA’s regulations regarding multi-club ownership and participation in European competitions are designed to prevent any potential collusion.

The governing body's rulebook specifies that a club must demonstrate that it is not "simultaneously involved in any capacity whatsoever in the management, administration, and/or sporting performance of more than one club participating in a UEFA club competition."

Nottingham Forest owner Evangelos Marinakis, who also manages Greek club Olympiakos, sidestepped the multi-club ownership rules by diminishing his control over the Premier League side.

Similarly, Textor took measures to improve Palace's chances of competing in the Europa League by arranging the sale of his stake to New York Jets owner Johnson in June.