CAS Upholds UEFA Ruling Demoting Palace to Conference League Play-Off

• CAS has upheld UEFA’s decision to demote Crystal Palace from the Europa League to the Conference League over multi-club ownership rules.
• Nottingham Forest replace Palace in the Europa League, while Palace must face either Fredrikstad or Midtjylland in the Conference League play-off.
• The ruling centred on John Textor’s decisive influence at both Palace and Lyon as of UEFA’s 1 March compliance deadline.

Crystal Palace have lost their appeal at the Court of Arbitration for Sport (CAS) against UEFA’s decision to relegate them from the Europa League to the Conference League over breaches of multi-club ownership (MCO) rules. The ruling confirms Nottingham Forest’s promotion into the Europa League in Palace’s place and forces the Eagles to enter the Conference League play-off round later this month against the losers of Fredrikstad’s tie with Midtjylland.

Palace qualified for the Europa League after winning the FA Cup against Manchester City in May, but seven days later Paris Saint-Germain’s Coupe de France victory moved Lyon — also linked to Palace through shared ownership — up from the Conference League to the Europa League.

UEFA’s Club Financial Control Body (CFCB) determined that Palace and Lyon were too closely connected through American businessman John Textor. Textor held a 43.9% stake in Palace via Eagle Football Holdings Limited and was the controlling owner of Lyon. Under UEFA rules, no individual or entity can have more than 30% of the shares in two clubs competing in the same European competition if they have “decisive influence” over both.

Palace argued that Textor had no influence over the running of their club and highlighted that he sold his stake to New York Jets owner Woody Johnson in July. However, UEFA’s regulations base eligibility on the situation as of 1 March, and CAS found no grounds for flexibility. The panel dismissed Palace’s three claims: that the CFCB’s decision was unfair, that Nottingham Forest should not be elevated to the Europa League, and that Lyon should be excluded instead.

“Regulations are clear and do not provide flexibility to clubs that are non-compliant on the assessment date,” CAS stated, adding that Textor still held decisive influence at both clubs when UEFA made its assessment.

Before this summer, no club had been removed from European competition under the updated MCO deadline, which was moved forward from June 3 to March 1. Palace became the third to be affected this season, alongside Ireland’s Drogheda United and Slovakia’s FC DAC 1904 Dunajská Streda, both of whom also lost appeals to CAS.

Similar action has been taken elsewhere in football, with Mexico’s Club León removed from the FIFA Club World Cup earlier this year due to ownership conflicts.

Palace’s demotion comes just after their Community Shield triumph over Liverpool. The club will now attempt to regroup as they prepare for their Conference League play-off, while Forest take their place in the Europa League group stage.