Crystal Palace’s monumental FA Cup victory, their first major trophy in 120 years, secured a coveted spot in the 2025-26 UEFA Europa League. The triumph over Manchester City at Wembley was a defining moment, promising a historic European campaign. However, this achievement has been eclipsed by a looming demotion to the UEFA Conference League, driven by a violation of UEFA’s multi-club ownership rules.
🚨 OFFICIAL: UEFA announce Crystal Palace won’t be playing in the Europa League next season.
— Fabrizio Romano (@FabrizioRomano) July 11, 2025
Palace to play in the Conference League per UEFA rules. pic.twitter.com/kuiGpiQVGq
Ownership Conflict at the Core
The root of Palace’s predicament lies with American businessman John Textor, whose ownership group holds significant stakes in both Crystal Palace and French club Olympique Lyonnais, also qualified for the Europa League. UEFA’s strict regulations prevent any individual from controlling or influencing multiple clubs in the same competition to maintain competitive integrity. With both clubs set to compete, UEFA’s scrutiny has placed Palace’s participation in jeopardy.
Lyon’s Relegation Rollercoaster
The situation was briefly hopeful for Palace when Lyon faced relegation to Ligue 2 due to financial breaches, which could have stripped them of their UEFA license. However, Lyon’s successful appeal to remain in Ligue 1 has shifted the balance, with their higher league finish likely prioritizing them for the Europa League, leaving Palace vulnerable to demotion.
Missed Deadlines and Failed Fixes
Palace’s failure to restructure their ownership before UEFA’s deadline has compounded their woes. Attempts to place shares in a blind trust were rejected, and ongoing efforts to sell Textor’s stake have not been finalized in time. This lack of compliance has left the club with little leverage to challenge UEFA’s ruling.
Ripple Effects Across the Premier League
If Palace is demoted to the Conference League, Nottingham Forest, originally slated for the third-tier competition, could be promoted to the Europa League. Brighton, in turn, might secure a Conference League spot. This reshuffling has sparked debate among fans, with some viewing it as an opportunity for other clubs and others decrying the unfairness to Palace.
Palace’s Fight and Legal Options
The club’s leadership is furious, arguing that the penalty is excessive given their independent operations and lack of competitive conflict. They are considering an appeal to the Court of Arbitration for Sport, contending that a fine or oversight measures would be a fairer response. Palace insists their FA Cup achievement should not be undermined by a technical breach.
Fan Frustration and Ownership Debates
Palace fans are devastated, facing the prospect of a diminished European campaign. The situation has fueled broader discussions about the fairness of UEFA’s ownership rules in an era of complex, multi-club investments. Supporters feel their club is being unfairly punished, especially as they may still owe Europa League bonuses while competing in the less lucrative Conference League.
Awaiting the Final Verdict
As Palace awaits UEFA’s final decision, the club’s European aspirations hang in the balance. The potential demotion threatens to disrupt their transfer plans and financial projections, tarnishing the glow of their FA Cup success. For a club dreaming of European glory, the shift to the Conference League marks a bitter setback in their storied journey.
