Premier League tremor: Why did UEFA demote Crystal Palace from Europa League to Conference League?

A seismic jolt has shaken English soccer as Crystal Palace, fresh off their historic FA Cup triumph, have been stripped of their place in the UEFA Europa League and instead demoted to the third-tier UEFA Conference League for the 2025-26 season. The decision, handed down by UEFA, has cast a shadow over what should have been a landmark year for the South London club, now embroiled in a bureaucratic saga tied to ownership rules.

Palace’s fairytale FA Cup victory over Manchester City in May should have secured their first appearance in a major European competition. Instead, they now find themselves at the center of a regulatory storm—one that UEFA officials say could not be ignored.

In an official statement released Friday, UEFA confirmed that Crystal Palace breached eligibility criteria for the Europa League, which led to their demotion. “Reject Crystal Palace’s admission to the UEFA Europa League 2025–26 and admit the club to the UEFA Conference League 2025–26,” UEFA’s Club Financial Control Body (CFCB) declared.

This verdict comes after weeks of speculation and follows a crucial UEFA review of multi-club ownership regulations, which are designed to protect competitive integrity in European competitions.

The hidden conflict behind the scenes

At the heart of this upheaval is John Textor, Palace’s largest shareholder. Textor also holds ownership of Lyon, who qualified for the Europa League after finishing sixth in Ligue 1.

UEFA’s multi-club ownership rules prohibit individuals or ownership groups from exerting “decisive influence” over more than one club participating in the same European competition. A March 1, 2025 deadline was set by UEFA to resolve potential conflicts. Textor’s situation did not meet this deadline, and although he agreed to sell his Palace shares to New York Jets co-owner Woody Johnson, the deal came too late.

“I honestly thought they’d fix it before I had a problem,” Textor previously told talkSPORT. “If I had decisive influence, I would have been trying to sell the club. I was so sure it’d be a long time before Palace was in this situation.”

But UEFA didn’t see it that way. Despite an effort by Textor and co-owner David Blitzer to place their shares into a blind trust—a method that has occasionally allowed other multi-club scenarios to pass scrutiny—UEFA ruled that the attempt came too late and still left room for undue influence.

Lyon’s relegation reprieve and the domino effect

The decision was heavily influenced by the reversal of Lyon’s relegation from Ligue 1, which had originally opened the door for Palace to participate in the Europa League. UEFA had agreed that if Lyon had dropped into France’s second tier, they would be barred from European play. However, Lyon successfully appealed the relegation ruling, clearing their financial books and cementing their right to play in Europe.

UEFA thus faced a choice between two clubs tied to the same majority owner. As Lyon had finished higher in their domestic league, they were given priority, and Palace were pushed down to the Conference League.

Nottingham Forest benefit from shake-up – But Palace plotting an appeal

The unexpected demotion of Palace has a ripple effect: Nottingham Forest, who finished seventh in the Premier League, are now set to take Palace’s place in the Europa League. A UEFA source told AFP that Forest would receive the upgraded slot—a move potentially worth $21 million more in prize money.

The Eagles are not taking the news lightly. A club spokesperson confirmed that they plan to appeal to the Court of Arbitration for Sport (CAS). UEFA’s own statutes allow for such a move, and Palace hope for a swift resolution, especially with Conference League qualifiers fast approaching.

“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,” UEFA said.