Crystal Palace’s historic FA Cup triumph has been overshadowed by a devastating UEFA decision that strips the London club of their Europa League spot. The governing body announced Friday that Palace will compete in the Conference League instead, marking an unprecedented punishment for multi-club ownership violations that has left fans and officials furious.
The Sweet Victory That Turned Bitter
Crystal Palace achieved their greatest moment in 164 years of existence when they defeated Manchester City 1-0 in the FA Cup final at Wembley Stadium on May 17, 2025. Eberechi Eze’s stunning 16th-minute volley secured the club’s first-ever major trophy, with goalkeeper Dean Henderson making crucial saves throughout the match. The victory was supposed to guarantee Palace their inaugural European campaign in the prestigious Europa League.
Manager Oliver Glasner, who had previously won the Europa League with Eintracht Frankfurt, finally achieved vindication after a nightmare start to the season. Palace managed just three points from their first eight Premier League games, yet the Austrian coach maintained faith in his players. The FA Cup triumph represented the ultimate reward for that patience and belief.
The Ownership Web That Ensnared Palace
The euphoria of Wembley quickly gave way to uncertainty as UEFA’s multi-club ownership rules came under scrutiny. American businessman John Textor, who owns a 43% stake in Crystal Palace through his Eagle Football Holdings company, also controls 77% of French club Lyon. Both clubs qualified for the Europa League, creating an immediate conflict with UEFA regulations that prohibit entities from having significant influence over multiple clubs in the same competition.
UEFA’s Club Financial Control Body ruled that both clubs breached Article 5.01 of the UEFA Club Competition Regulations as of March 1, 2025. This earlier deadline proved crucial for Palace, who hadn’t even played their FA Cup fifth-round match against Millwall when the compliance date passed. The club was sitting 12th in the Premier League at that time, with European qualification seemingly impossible.
The March Deadline That Sealed Palace’s Fate
UEFA had moved its compliance deadline from June 1 to March 1, 2025, specifically to avoid uncertainty created by last-minute ownership changes. Despite Textor’s agreement to sell his Palace stake to New York Jets owner Woody Johnson for £190 million in June 2025, the deal came well after UEFA’s deadline. The regulatory body strictly enforced its March 1 cutoff, refusing to consider developments that might have resolved the ownership conflict.
The sale to Johnson, who has an estimated net worth of $9.2 billion and previously served as U.S. Ambassador to the United Kingdom, required Premier League approval through the owners’ and directors’ test. While Johnson’s extensive experience owning the Jets for 25 years suggested quick approval, the timing rendered the transaction irrelevant to UEFA’s decision.
Lyon’s Relegation Reversal Changes Everything
The situation became even more complex when Lyon faced their own crisis. The French club was initially relegated to Ligue 2 by the DNCG (Direction Nationale du Contrôle de Gestion) due to massive debts exceeding €541 million. This relegation would have potentially cleared the way for Palace to participate in the Europa League, as Lyon would have been barred from European competition.
However, Lyon successfully appealed their relegation on July 9, 2025, convincing the appeals committee with a new financial plan that included a €100 million cash injection and another €100 million as security. Their successful appeal meant both clubs were once again competing for the same Europa League spot, forcing UEFA to make a definitive ruling between the two Textor-owned sides.
The Priority System That Favored Lyon
UEFA’s regulations clearly state that when two clubs with ownership conflicts qualify for the same competition, the club with the higher domestic league finish takes precedence. Despite Palace earning their Europa League spot through their FA Cup victory, Lyon’s sixth-place finish in Ligue 1 ranked higher than Palace’s 12th-place finish in the Premier League.
This priority system contradicts typical Europa League qualification rules, which usually favor domestic cup winners over league-qualified teams. The decision has sparked controversy within the football community, with many arguing that Palace deserved their spot based on sporting merit rather than administrative technicalities.
Financial Implications and Forest’s Windfall
The demotion represents a significant financial blow to Crystal Palace. The Europa League is potentially worth €20 million more in prize money compared to the Conference League. This difference could have substantial implications for the club’s transfer budget and ability to attract high-profile players for their first-ever European campaign.
Nottingham Forest, who finished seventh in the Premier League and originally qualified for the Conference League, are expected to be promoted to the Europa League to replace Palace. This promotion would provide Forest with a major financial boost and enhance their ability to compete in the transfer market. Forest had previously won back-to-back European Cups in 1979 and 1980, making their return to the Europa League a significant moment for the club.
Palace’s Fighting Spirit and CAS Appeal
Crystal Palace has confirmed they will appeal UEFA’s decision to the Court of Arbitration for Sport (CAS). The club’s representatives have expressed anger at the ruling, arguing they earned their Europa League spot through sporting achievement and maintaining that Textor had no decisive influence over their operations.
The appeal process could be fast-tracked, with a decision needed before the Europa League draw scheduled for August. However, UEFA’s Club Financial Control Body is waiting for the outcome of Palace’s appeal before confirming Forest’s promotion to the Europa League.
A Pattern of Strict Enforcement
This case represents a significant shift in UEFA’s approach to multi-club ownership violations. While previous cases involved clubs being allowed to compete through arrangements like blind trusts or ownership restructuring, UEFA has become increasingly strict in enforcing these rules. Earlier this summer, the organization also removed Irish club Drogheda United and Slovakian side FC DAC 1904 Dunajská Streda from the Conference League due to similar ownership conflicts.
The decision demonstrates UEFA’s commitment to maintaining the integrity of European competitions, even when it means penalizing clubs that have achieved success through legitimate sporting means. Twelve months ago, UEFA cleared Girona and Manchester City to play in the Champions League alongside Manchester United and Nice in the Europa League through blind trust arrangements.
Looking Forward Despite Disappointment
Despite the disappointment, Crystal Palace will still make their European debut in the Conference League, marking the first time in the club’s 164-year history that they will compete in a major European competition. The Conference League, while less prestigious than the Europa League, still offers valuable experience and the opportunity to compete against clubs from across Europe.
Manager Oliver Glasner, who won the Europa League with Eintracht Frankfurt in 2022, has expressed optimism about the club’s future regardless of which competition they enter. The Austrian coach has challenged his players to “go for every single trophy” as they prepare for their inaugural European campaign.
The Textor Factor and Eagle Football Empire
John Textor’s Eagle Football Holdings has rapidly expanded its influence across global soccer, acquiring controlling interests in clubs in France, Brazil, Belgium, and England. His business empire includes Lyon, Crystal Palace, Brazilian club Botafogo, and Belgian side Molenbeek, creating a web of ownership that has increasingly come under scrutiny from regulatory bodies.
The 59-year-old businessman has been linked to various other football investments, including a failed bid to purchase Everton. His approach to multi-club ownership has become increasingly controversial, with UEFA repeatedly warning about the growing trend and its potential threat to competition integrity.
The Bitter Pill for Palace Fans
The UEFA ruling represents a harsh lesson in the complexities of modern football ownership and European competition regulations. While Crystal Palace achieved their greatest sporting triumph by winning the FA Cup, administrative issues have prevented them from enjoying the full rewards of their historic victory.
For Palace supporters, who created an electric atmosphere at Wembley and celebrated their first major trophy with unprecedented joy, the demotion feels particularly cruel. The club that had never won a major trophy and never competed in Europe finally achieved both milestones, only to have the latter taken away by bureaucratic technicalities.
Historical Precedent and Continuing Challenges
This scenario echoes past events in Palace’s history. The club believed they had secured a place in the UEFA Cup after finishing third in the 1990-91 season under Steve Coppell, but English clubs had been banned from European competitions following the Heysel disaster. While the current penalty is less severe, it remains frustrating for Palace, who feel unjustly deprived of a chance to compete in a tournament they rightfully qualified for.
The ruling also highlights the broader challenges facing football as multi-club ownership becomes increasingly common. American investors, in particular, have embraced this model, creating potential conflicts as more clubs qualify for European competition.
The Road Ahead
As the appeals process unfolds and the new European season approaches, the football world will be watching to see whether Crystal Palace can overturn this decision and claim their rightful place in the Europa League. Regardless of the outcome, the club has already written the most important chapter in their 164-year history by lifting the FA Cup at Wembley.
The case underscores UEFA’s determination to enforce multi-club ownership rules more strictly, even when it means penalizing clubs that have achieved success through legitimate sporting means. For Palace fans, the Conference League represents some consolation, but a lingering sense of injustice will persist unless their CAS appeal succeeds.
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