UEFA’s statement in full as Crystal Palace, Lyon Europa League decision is confirmed with Nottingham Forest handed boost

UEFA have confirmed that Crystal Palace will not compete in the 2025-26 Europa League and will be demoted to the Conference League after breaching the governing body’s rules on multi-club ownership.

Oliver Glasner’s side had initially earned a place in next season’s Europa League after winning the FA Cup in May, their first ever major domestic trophy.

However, their participation in UEFA second-tier club competition was quickly thrown into doubt due to co-owner John Textor’s majority ownership of Lyon, who won their spot in the Europa League courtesy of a sixth-placed finish in Ligue 1.

UEFA’s rules state that no individual or legal entity can have “control or influence” over more than one team participating in a UEFA club competition, and European football’s governing body must be satisfied that the respective clubs are separate entities to maintain their tournaments’ integrity.

Textor’s Eagle Football Holdings group owns 90% of Lyon and 43% of Palace, though his stake in the latter is in the process of being sold to fellow American businessman Woody Johnson for a reported £190m.

The 59-year-old recently resigned from his leadership position on the board of Lyon, but he will remain co-owner of the French side, whose relegation from Ligue 1 for financial mismanagement has been officially overturned.

UEFA reject Crystal Palace defence as Lyon secure Europa League spot

UEFA’s rules set a deadline of March 1, 2025 to show evidence of multi-club ownership restructuring, but Palace missed that deadline.

Palace’s four principal owners - Textor, chairman Steve Parish, David Blitzer and Josh Harris - all met with UEFA’s Club Financial Control Body at their headquarters in Nyon last month to present their case that Textor did not have decisive influence at the club beyond the March 1 deadline.

Textor himself has since publicly claimed that he has documentation to prove that he could not make "management decisions" at Selhurst Park and that demotion to the Conference League was ‘unlikely’.

However, UEFA have not accepted Palace’s defence and Lyon will therefore retain their Europa League spot over the Eagles because of their higher league position.

Multiple reports are now claiming that Palace will lodge an appeal with the Court of Arbitration for Sport.

UEFA's statement in full confirms Crystal Palace fate

A statement from the First Chamber of UEFA’s (Club Financial Control Body) releases on Friday 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 (see media release of 30 June 2025).

“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.

“The present decision may be appealed against before the Court of Arbitration for Sport, in accordance with Articles 62 and 63 of the UEFA Statutes.”

Will Nottingham Forest replace Crystal Palace in Europa League?

UEFA’s decision to demote Crystal Palace does not only benefit Lyon, but it may also benefit Nottingham Forest who could replace the Eagles in the Europa League.

Nuno Espirito Santo’s side finished seventh in the Premier League last season and originally qualified for the Conference League.

Like Palace, Forest missed the aforementioned March 1 deadline, with owner Evangelos Marinakis removing himself from control of the club on April 30, putting his shares into a blind trust at a time when the Tricky Trees were seeking to qualify for the Champions League alongside Olympiakos, who are also owned by the Greek billionaire.

Forest fail to qualify for the Champions League on the final day of the Premier League campaign and secured their spot in the Conference League instead, allowing Marinakis to take back control of the club.

It remains to be seen when UEFA will confirm whether Forest will take Palace’s place in the Europa League, with a decision likely to be delayed if Palace do indeed lodge an appeal.

Written by
Oliver Thomas