By Martin Graham
Crystal Palace’s long-awaited dream of playing in Europe has ended in bitter disappointment, just weeks after a historic FA Cup victory. Despite defeating Manchester City 1-0 in the final at Wembley – the club’s first major trophy – Palace have lost their place in next season’s Europa League. UEFA’s enforcement of its multi-club ownership rules has resulted in Nottingham Forest taking their spot, while Palace drops into the less lucrative Conference League.
Issues with ownership and missed deadline
The central issue revolves around John Textor, who holds a 43% stake in Crystal Palace through his company, Eagle Football Holdings. Textor also owns a controlling share in French side Lyon, who qualified for the same European competition. UEFA determined that both clubs could not participate in the Europa League due to Textor’s involvement in each.
Although Palace argue that Textor does not exercise meaningful control over the club – a claim supported by Textor himself – UEFA did not agree. The south London club failed to submit any structural changes by the required 1 March deadline, which could have helped demonstrate independence from Textor’s influence. Had they acted earlier or been able to convince UEFA of their case, Palace may have retained their place.
Nottingham Forest, facing a similar conflict due to Evangelos Marinakis’s ownership of Olympiakos, avoided a comparable fate. Marinakis placed his Forest stake into a blind trust before the deadline, relinquishing control and satisfying UEFA’s criteria. As a result, Forest were ruled eligible for European competition, while Palace were not.
Growing tensions and UEFA decision
The situation has reportedly caused friction between the two clubs. Sources indicate that Forest submitted a formal letter to UEFA raising concerns about Palace’s eligibility. This move has caused unease at Selhurst Park, where some believe Forest’s lobbying played a role in UEFA’s final judgment.
Palace have argued that they followed the spirit of the rules, even agreeing to sell Textor’s share to American businessman Woody Johnson for nearly £190 million. The sale was seen as a step towards resolving ownership issues, but it came too late to influence UEFA’s stance.
Efforts by Palace to convince the governing body that there was no operational link between them and Lyon were ultimately unsuccessful. The timing of the ownership changes and the lack of earlier action played a significant role in the outcome.
Lyon’s status and the failed lifeline
A brief moment of hope appeared when Lyon faced relegation from Ligue 1 in June due to financial issues. If the demotion had stood, Lyon would have lost the right to participate in European competition, which might have cleared a path for Palace to reclaim their Europa League spot.
However, Lyon appealed the decision, and the French authorities ruled in their favor. Given concerns about broadcasting revenue and the future of French football’s visibility – especially after DAZN withdrew from its domestic contract with the French league – the reinstatement of Lyon to the top flight seemed inevitable.
With Lyon confirmed as Europa League participants and UEFA standing firm on its multi-club policy, Palace’s demotion was sealed. The club is now expected to take its case to the Court of Arbitration for Sport, though their chances of success remain uncertain.
