Crystal Palace have lost their appeal against being demoted from the Europa League and will instead compete in the Conference League this season.
The Court of Arbitration for Sport (Cas) upheld UEFA ruling, confirming Nottingham Forest’s promotion into the Europa League in Palace’s place. The decision comes just a day after Palace’s Community Shield victory over Liverpool at Wembley.
The punishment stems from UEFA’s multi-club ownership rules, which prohibit teams controlled by the same individual from competing in the same European tournament.
American businessman John Textor, who held a 43% stake in Palace until June, is also the majority owner of French club Lyon, another Europa League qualifier.
UEFA found that Textor retained decisive influence over both clubs at the assessment date, and Palace missed the 1 March 2025 deadline to prove restructuring.
Palace’s appeal, lodged in July, argued that Textor no longer held such influence and claimed they were treated unfairly compared with Forest and Lyon.
However, CAS ruled that the regulations leave no room for flexibility and dismissed the club’s claims. Nottingham Forest avoided sanctions after owner Evangelos Marinakis diluted his control earlier in the year to comply with Uefa requirements.
From a sporting perspective, the demotion represents a significant blow for Palace, who secured their Europa League spot by winning last season’s FA Cup.
While some may argue they now stand a better chance of winning the Conference League, the club views the decision as a serious injustice. The ruling is expected to cost them around £20m in lost revenue and prestige.
Financially, the impact could affect Palace’s transfer plans before the window closes. The club may struggle to sign top targets and could be forced to sell key players.
Defender Marc Guehi, with less than a year remaining on his contract, is attracting interest from Liverpool, while attacking midfielder Eberechi Eze is on the radar of Arsenal and Tottenham.
Palace will now prepare for the Conference League play-off round later this month, where they will face either Norwegian side Fredrikstad or Denmark’s Midtjylland.
