The Real Reason Crystal Palace Lost Their Europa League Spot To Lyon

‎UEFA confirmed on Friday that Crystal Palace has been dropped to the third-tier Conference League due to multi-club ownership rules.

‎Meanwhile, Olympique Lyonnais will be allowed to participate in the Europa League.

‎Palace had qualified for the Europa League by winning the FA Cup last season, while Lyon reached the competition by finishing sixth in Ligue 1.

‎A decision to relegate Lyon to France’s second-tier Ligue 2 due to financial issues was overturned on Wednesday, clearing the way for UEFA’s Club Financial Control Body (CFCB) to proceed with its ruling on the multi-club ownership case.

‎”Consequently, the CFCB First Chamber pursued the assessment of the documentation submitted by Olympique Lyonnais and Crystal Palace and concluded that the clubs breached, as at 1 March 2025, the multi-club ownership criteria,” UEFA said in a statement.

‎As both Lyon and Palace had qualified for the Europa League, the French club was allowed to keep their place as they finished higher in their respective league, with Palace finishing 12th in the Premier League.

‎The Eagle Football Group is the majority owner of Lyon, while their chairman, John Textor, also has a controlling stake in Crystal Palace. Textor resigned from Lyon’s board of directors, and Michele Kang was appointed as chairwoman and presidentMichele Kang was appointed as chairwoman and president.

‎Last month, Palace revealed that Woody Johnson, co-owner of the New York Jets, had signed a binding agreement to purchase Eagle Football Holding’s stake in the club.

‎The deal is still pending approval from the Premier League.

‎However, Palace had missed the March deadline to comply with the multi-club ownership rules.

‎Textor was stunned

‎”Honestly, I am stunned. We did everything possible to separate from the club, as UEFA would ask, with a sale process that began before the deadline, and a sale that will occur well before the draw,” Textor told Reuters.

‎”Now we have sold out of a club that I love, to help Palace fans continue this dream year, only to have another off-the-pitch decision lay waste to a historic sporting victory.”

‎Lyon had been demoted by the DNCG, French football’s financial watchdog, in November due to the poor state of their finances, but their relegation to Ligue 2 was overturned by its appeals committee.

‎Palace can still appeal UEFA’s decision at the Court of Arbitration for Sport. If UEFA’s ruling stands, the rules could allow Nottingham Forest to participate in the Europa League if they meet the admission criteria.

‎Forest finished seventh last season and initially qualified for the Conference League, while Aston Villa and Palace qualified for the Europa League by finishing fifth and sixth, respectively.

‎The rules say no club may hold or deal in securities or shares of any other club participating in UEFA’s competitions, and that no club can be a member of any other club participating in UEFA competitions.

‎Additionally, no individual is permitted to be involved simultaneously in the management, administration, or sporting performance of any club, and they must not hold control or hold decisive influence over multiple clubs.