Alex MacQuoid
Crystal Palace’s European ambitions have taken a crushing hit after the Court of Arbitration for Sport (CAS) upheld UEFA’s decision to demote them from the Europa League to the Conference League over breaches of multi-club ownership (MCO) rules.
The ruling, delivered on Monday, confirmed that the FA Cup winners would not compete in European football’s second-tier competition this season. Instead, Nottingham Forest will take their place, a switch that could cost Palace up to £20m in lost revenue.
Why Palace Were Demoted
UEFA regulations prohibit two clubs under the same ownership or influence from playing in the same European competition. At the heart of the case was John Textor, then holding a 43% stake in Palace through Eagle Football Holdings while also controlling French side Lyon. Despite reduced voting rights, UEFA judged Textor to have “decisive influence” at Selhurst Park as of the 1 March deadline.
Palace argued their governance structure—led by chairman Steve Parish and majority partners Josh Harris and David Blitzer—prevented Textor from exerting control. They also claimed other clubs in the European Club Association had been given flexibility beyond the deadline. CAS rejected those claims, citing recent precedent when Irish club Drogheda United was removed from the Conference League under similar circumstances.
Forest and Lyon in the Frame
Forest, who reported Palace to UEFA earlier this year, benefit directly from the ruling. Their owner Evangelos Marinakis had preemptively placed his shares into a blind trust in April to avoid a similar conflict with Olympiakos. Lyon, finishing higher in Ligue 1 than Palace did in the Premier League, were given priority for the Europa League slot under UEFA’s rules.
A Costly Setback After Wembley Glory
The timing could not be more bittersweet for the Eagles. Just a day earlier, Oliver Glasner’s side had lifted the Community Shield, defeating Liverpool on penalties after a dramatic 2-2 draw at Wembley. Goals from Jean-Philippe Mateta and Ismaila Sarr cancelled out strikes by Hugo Ekitike and Jeremie Frimpong, before Dean Henderson starred in the shootout.
After the win, Glasner insisted he wouldn’t swap the Shield for an appeal victory, telling reporters: “Tomorrow we have no influence, so we celebrate tonight.” Henderson, however, voiced the squad’s frustration: “For football purposes we deserve to be in the Europa League… To have that taken away is just not right for football.”
What’s Next for Palace?
While officials weigh further legal avenues, the reality is clear: Crystal Palace’s European journey will now start in the Conference League. For betting markets, expect early shifts in outright odds, with Palace moving into the role of tournament contenders rather than Europa League dark horses.
Forest, meanwhile, will relish their upgraded status, stepping into a competition that offers greater prize money, higher coefficient points, and a bigger stage.
The verdict reinforces UEFA’s hard line on multi-club ownership—a message that will not be lost on investors and club executives across Europe.