, ,

From Glory to Controversy: Palace Demoted, Forest Elevated in UEFA Twist

Crystal Palace have been relegated from the UEFA Europa League to the UEFA Conference League for the upcoming European campaign, after UEFA ruled that the club breached its multi-club ownership rules. The decision, confirmed by European football’s governing body on Friday, has also led to Nottingham Forest being promoted to the Europa League, despite finishing below Palace in the domestic competition hierarchy.

At the heart of the controversy is American businessman John Textor, who owns a 43% stake in Crystal Palace and is also the majority shareholder in Olympique Lyonnais, the French club that also secured qualification for the Europa League this season.

Under UEFA’s multi-club ownership regulations, two clubs with overlapping ownership structures are not permitted to compete in the same European tournament, to preserve the integrity of the competition. In situations where both clubs qualify for the same tournament, UEFA rules prioritize the team that finishes higher in its domestic league.

Lyon, who finished 6th in Ligue 1, were given precedence over Palace, who ended the Premier League season in 12th place. Despite Palace winning the FA Cup in May, their first major trophy in the club’s 119-year history and thereby securing a place in the Europa League, they will now drop into the third-tier UEFA Conference League instead.

UEFA’s ruling was delayed by a separate dispute involving Lyon’s domestic status. The club had initially been relegated to France’s second division due to financial issues, but that decision was overturned earlier this week after Textor stepped back from day-to-day operations at the French side. Once Lyon’s Ligue 1 status was reinstated, UEFA moved forward with its decision on the multi-club conflict.

Although Textor has since agreed to sell his stake in Crystal Palace to New York Jets owner Woody Johnson, that transaction was agreed after UEFA’s March 1 deadline for resolving ownership conflicts ahead of European competition.

As a result of Palace’s demotion, Nottingham Forest, who finished seventh in the Premier League, will now take Palace’s spot in the Europa League, according to sources within UEFA. Forest had initially been placed in the Conference League but now find themselves in a higher-tier European competition.

Crystal Palace are expected to appeal UEFA’s ruling to the Court of Arbitration for Sport (CAS). Club officials have expressed disappointment at the timing of the decision and the lack of flexibility, especially given their landmark FA Cup triumph and the late-stage sale agreement involving Textor’s shares.

While the outcome of any appeal remains uncertain, it is unlikely to change UEFA’s competition placements for the 2025–26 season, as deadlines for registration and fixture planning are fast approaching.

This ruling underscores the growing complexities around multi-club ownership, a model that has become increasingly common in European football. Investors, particularly from the U.S., Middle East, and Asia, have acquired stakes in multiple clubs across different leagues, raising concerns about competition integrity and UEFA’s ability to regulate these relationships.

UEFA President Aleksander Čeferin has previously acknowledged the challenge, stating that the body must adapt its rules to address the evolving financial and ownership structures in the game.

For Palace, what should have been a historic debut in the Europa League has now turned into a frustrating legal and regulatory battle. For Forest, however, the decision opens the door to their most significant European campaign in decades.

Share post

Leave a Reply

Your email address will not be published. Required fields are marked *