Crystal Palace demoted to UEFA Conference League over multi-club ownership breach
Crystal Palace have been relegated from the UEFA Europa League to the UEFA Conference League following a breach of UEFA’s strict multi-club ownership rules. The decision deals a major blow to the South London club, who had just qualified for European competition for the first time in their history by winning the 2025 FA Cup.
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Palace’s historic season ends in controversy
After an incredible domestic season capped off by lifting the FA Cup, the first major trophy in Crystal Palace’s 119-year history, the club had been set to compete in the 2025–26 Europa League. But UEFA announced on Friday that Palace had been demoted to the Conference League due to a conflict of interest involving majority shareholder John Textor.
Textor also holds a controlling interest in Ligue 1 club Olympique Lyonnais, who also qualified for the Europa Leagueby finishing sixth in France’s top flight. Under UEFA regulations, clubs under shared ownership cannot participate in the same European competition.
UEFA's announcement: The CFCB First Chamber renders decision on Crystal Palace and Olympique Lyonnais
What triggered the UEFA ruling?
UEFA’s March 1 deadline for resolving ownership conflicts passed without resolution. Although Textor has since reached a deal to sell his 43% stake in Palace to New York Jets owner Woody Johnson, the transaction was not finalized in time. As a result, Lyon retain their Europa League spot, while Palace are forced to drop down to the Conference League.
The ruling also comes just days after Lyon successfully appealed a separate financial ruling in France that had threatened to relegate them from Ligue 1.
Steve Parish slams UEFA’s decision
Crystal Palace chairman Steve Parish didn’t hold back in his response. Speaking to Sky Sports, he said:
“We are obviously devastated, most importantly for the supporters. It’s a bad day for football.”
“Most right-minded football fans will see what a terrible injustice this is for the football club, and I hope someone can remedy it. I don’t believe that UEFA truly want this.”
The club is expected to file an appeal to the Court of Arbitration for Sport (CAS) to overturn the decision.
What happens vext? Nottingham Forest step up
With Palace removed from the Europa League, Nottingham Forest, who finished seventh in the Premier League, have been elevated to take their spot, according to sources at UEFA. Palace will now enter the third-tier UEFA Europa Conference League, marking a bittersweet end to what was supposed to be a landmark season.
Multi-Club Ownership in Focus
The situation has reignited debate around multi-club ownership models, which have become increasingly common in modern football. UEFA’s rules are clear: No two clubs under the same effective control can compete in the same European competition in the same season.
John Textor’s Eagle Football Holdings owns stakes in multiple clubs, including Lyon, Palace, Botafogo (Brazil), and RWD Molenbeek (Belgium). This structure has raised red flags within UEFA’s compliance framework.
For Crystal Palace supporters, who were dreaming of European nights at Selhurst Park, this decision comes as a gut punch. The club had broken new ground with their FA Cup triumph, and hopes were high for a deep run in European football’s second-most prestigious competition.
Instead, they'll now compete in the UEFA Conference League, which while still a European platform, lacks the prestige — and prize money — of the Europa League.
Final Thoughts
This ruling serves as a cautionary tale in the era of multi-club football ownership, especially as more investors look to build global football portfolios. With UEFA signaling a firm stance on governance, Crystal Palace's unfortunate demotion is likely not the last case we’ll see as the sport evolves.
For now, Palace fans must wait to see if the club’s legal team can overturn the ruling, or if the Eagles will have to settle for Conference League football in 2025–26.
SportsLigue