Crystal Palace demoted to Conference League after UEFA rule on Lyon multi-ownership case

Crystal Palace have been demoted from the Europa League to the Conference League for the 2025-26 season following a UEFA ruling on the issue of multi-club ownership involving the Eagles and Lyon.

Palace qualified for the Europa League after stunning Manchester City in the FA Cup final in May to capture their first major trophy.

However, they and Lyon are both owned by American businessman John Textor. Lyon also qualified for the Europa League after finishing sixth in Ligue 1, with UEFA rules prohibiting two clubs with shared ownership from playing in the same competition.

Lyon’s demotion from Ligue 1 to Ligue 2 last month appeared to have rendered the issue of multi-club ownership moot. The French club appealed the decision by the National Directorate of Management Control (DNCG) but agreed with UEFA that they would not play in the Europa League if they lost the appeal.

However, their appeal was successful, clearing Lyon to play in both Ligue 1 and the Europa League and putting Palace in jeopardy.

Textor agreed a deal to sell his stake in Palace to Woody Johnson, owner of the NFL’s New York Jets, last month. However, that deal has yet to be approved by the Premier League.

And that lack of ratification has proved costly for Palace, with UEFA handing them a demotion that means their place in the Europa League will likely go to Nottingham Forest, who qualified for the Conference League through a seventh-placed finish in the Premier League.

A statement from UEFA read: “The CFCB First Chamber had opened proceedings against Crystal Palace and Olympique Lyonnais due to a potential conflict with the multi-club ownership rule provided for in Article 5 of the UEFA Club Competitions Regulations.

“On 9 July 2025, the appeal instance of the French financial control authority (DNCG) decided not to relegate Olympique Lyonnais to Ligue 2. Consequently, and following an assessment by the CFCB of all the other relevant conditions included in the settlement agreement, Olympique Lyonnais will not be excluded from the 2025-26 UEFA club competitions.

“Consequently, the CFCB First Chamber pursued the assessment of the documentation submitted by Olympique Lyonnais and Crystal Palace and concluded that the clubs breached, as at 1 March 2025, the multi-club ownership criteria foreseen in Art 5.01 of the UEFA Club Competition Regulations.

“For this reason, and in accordance with the provisions set in Art. 5.02, 5.03 and 5.04 of the UEFA Club Competitions Regulations, the CFCB First Chamber decided: 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 can appeal the decision to the Court of Arbitration for Sport.

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