On July 11, the Union of European Football Associations (UEFA) announced: Crystal Palace Club (England) will not be allowed to participate in the Europa League season 2025/26, despite being the reigning FA Cup champion.
The place in Europe's second-tier competition was given to Nottingham Forest, who finished seventh in the Premier League last season.
The decision was made after UEFA determined that Crystal Palace had violated multi-club ownership regulations, as American businessman John Textor currently holds shares in Palace (England) and is the controlling shareholder of Lyon Club (France) - the team also won a ticket to the Europa League.
Breaking the ownership rules: Palace is no exception
Under current UEFA regulations, only one team is allowed to participate in the same European competition if two clubs are owned or controlled by the same person or entity. This rule is intended to avoid conflicts of interest and the risk of collusion in competition.
UEFA set a deadline of 1 March 2025 for clubs to adjust their ownership structures to ensure they do not breach the above rules. Crystal Palace failed to meet this requirement on time.
Palace argued that John Textor only held 43% of the shares and 25% of the voting rights, so he had no decisive influence on the club's management. However, UEFA rejected this view, saying that Textor's ownership level still exceeded the permitted threshold.
Meanwhile, Lyon – a team in which Textor owns 77% of the shares – finished the season in 6th place in Ligue 1. Palace, despite winning the FA Cup, finished 12th in the Premier League. Because Lyon finished higher in the domestic league, the Europa League spot was awarded to the French representative.
Palace had previously held out hope when Lyon were relegated to Ligue 2 for financial irregularities. If Lyon were unable to play, Palace would have been offered a place. However, Lyon won their appeal and retained their place in Ligue 1 – indirectly denying Palace their long-awaited return to European football.
Appeal and consequences: The legal battle is not over yet
Immediately after UEFA announced the decision, Crystal Palace confirmed that they would appeal to the Court of Arbitration for Sport (CAS).
CAS may speed up the process of handling the case, but it is likely to uphold the verdict, as it did with Drogheda United (Republic of Ireland) last month, also due to cross-ownership reasons.
Notably, John Textor attempted to transfer 43% of Palace shares to Mr. Woody Johnson - owner of the New York Jets football club - in June 2025 to legalize the conditions for the cup. However, this deal was not completed and was not considered by UEFA within the 1.3 deadline.
Textor later announced his resignation from his role as Lyon manager, but both moves were seen as too late to save Palace's Europa League place.
Meanwhile, Nottingham Forest – the seventh-placed team in the Premier League – would be the club to benefit if CAS does not overturn the case. This is also the club that proactively sent a letter to UEFA asking for clarification on Palace’s participation status since June.
Forest owner Evangelos Marinakis also took control of Olympiakos (Greece) but promptly reduced his control to avoid similar violations.
According to UEFA regulations, “a club not admitted to the competition shall be replaced by the next-ranked club in the top league of its member association”. With Aston Villa having already secured the remaining place by finishing sixth, Forest are next in line to qualify.
From European Dream to Reality Shock
The FA Cup win brought immense joy to Palace fans, opening the club's first appearance in European competition in their history, but things quickly turned sour when UEFA launched an investigation.
Palace's case is emblematic of the controversy surrounding the multi-club ownership model, which is increasingly common in modern football.
From City Group to Red Bull, or John Textor's Eagle Football Holdings, many "football corporations" are having difficulty balancing the interests of teams in the same system when entering the continental playing field.
Although there is still the possibility of an appeal, the prospect of Palace playing in the UEFA Conference League in 2025/26 is becoming more real than ever.
Source: https://baovanhoa.vn/the-thao/crystal-palace-bi-uefa-tuoc-suat-du-europa-league-nottingham-forest-huong-loi-151416.html
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