The Court of Arbitration for Sport (CAS) has announced that Crystal Palace has lodged an appeal regarding their relegation from the Europa League.
Palace secured their place in the Europa League by defeating Manchester City in the FA Cup final, but just a week later, Paris Saint-Germain’s win in the Coupe de France final allowed Lyon to move up from the Conference League to join the Europa League.
According to the UEFA Club Financial Control Agency (CFCB), Premier League clubs have significant connections to Lyon.
John Text has a major stake in both Lyon and Palace through Eagle Football Holdings Limited. While Premier League clubs contended that Text was not involved in the operations of these teams, regulations prevent individuals from holding more than 30% of shares in multiple clubs competing in the same tournament.
Following this, Text agreed to sell his stake in Crystal Palace to Woody Johnson, owner of the New York Jets.
Multi-Club Ownership (MCO) rules stipulate that if two clubs breach regulations, the higher-ranking team in the league cannot compete in European tournaments. Therefore, even if Palace (12th place) won the FA Cup and Lyon (6th place) qualified, the league would have the final say, contradicting the Europa League’s priority for domestic Cup winners.
Palace’s appeal involves three facets: the CFCB’s decision, Nottingham Forest, and Lyon.
Nottingham Forest, which is scheduled to enter the Conference League playoff next month, could move up to the Europa League should Palace’s appeal to CAS succeed.
In their initial appeal, Palace aims to overturn a decision by the CFCB made on July 11, 2025.
The club asserts that “Nottingham Forest’s admission has been declined and requests for re-admission to UEFA Europa League 2025/2026.”
In the final appeal, Palace is pushing for “re-admission to the UEFA Europa League 2025/2026 for denying entry to office officials.” This implies that there would be three Premier League teams in the Europa League, with none entering the Conference League.
Although Palace is not assured a spot in the league phase of the Conference League due to qualification matches, the financial incentives are significantly higher than those for the Europa League.
The playoff round draw for the Conference League is set for August 4th, creating suspense for Palace, Forest, and their competitors as they await the outcome of the appeal.
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Prior to this summer, MCO regulations had not resulted in any club being removed from European tournaments, but Palace has now become the third club impacted by stricter enforcement of regulations requiring compliance by March 1, rather than by June 3, as previously observed.
Drogheda United from Ireland faced repercussions in the Conference League due to ownership issues with Danish club Silkeborg, while Hungary’s Giriet was affected by similarities with FC DAC 1904 Dunajská Streda.
Drogheda secured the FAI Cup in November and led the Irish League on a calendar basis. Silkeborg was disqualified from the Conference League until June 1, three months past the new MCO deadline. Drogheda and FC DAC 1904 Dunajská Streda also appealed to CAS but were unsuccessful.
Both Palace and Drogheda contend that imposing such restrictions on clubs typically not competing in Europe is unjust.
As the March 1 deadline approached, Palace had not completed their fifth-round FA Cup match. Drogheda, finishing 9th, already knew they would compete in European football, while Silkeborg (7th) was not initially expected to qualify, only advancing to the playoffs after performing well in the relegation group.
Earlier this year, La Liga MX club Leon was excluded from the FIFA Club World Cup due to a dispute over ownership with Pachuca, highlighting a shift in how MCO is handled by football regulators.
This report incorporates information from Reuters.
Fan Take: This situation illustrates the complexities of club ownership rules in soccer, demonstrating how they can impact leagues and competitions significantly. Fans should be concerned, as these regulations not only affect the chances of clubs like Palace to compete but also influence the competitive balance within European football.
