Crystal Palace Face Europa League Expulsion After Lyon Win Appeal

Crystal Palace’s hopes of competing in the UEFA Europa League next season have been thrown into serious doubt after Lyon successfully overturned their relegation from Ligue 1.

As previously reported by i newspaper, Palace risked expulsion from the Europa League if Lyon’s appeal against relegation—imposed for financial irregularities—was upheld. That scenario has now been confirmed by the French Football Federation (FFF), following the decision of the financial watchdog DNCG.

Lyon had agreed to withdraw from European competition had their demotion been enforced. However, with their Ligue 1 status now reinstated, UEFA’s multi-club ownership regulations are set to come into play — likely forcing Palace out of the Europa League.

An official decision from UEFA is expected this week, but all indications suggest the South London club will instead be dropped into the UEFA Europa Conference League, Europe’s third-tier tournament.

Should Palace be demoted, Nottingham Forest — who finished seventh in the Premier League and qualified for the Conference League — could potentially be upgraded to take their Europa League place.

How Did Palace Qualify?
Crystal Palace secured automatic qualification for the 2025/26 Europa League by winning the FA Cup in May — their first major trophy in 118 years — with a stunning 1-0 victory over Manchester City at Wembley.

The Eagles have not featured in any European competition since 1998, when they were eliminated 4-0 on aggregate by Turkish side Samsunspor in the Intertoto Cup’s first round.

However, their Europa League status has been under review due to concerns over multi-club ownership.

American billionaire John Textor, via his holding company Eagles Holding Limited, had controlling interests in both Palace and Olympique Lyonnais, who themselves qualified for the Europa League after finishing sixth in Ligue 1.

UEFA regulations prevent two clubs with the same ownership or controlling influence from competing in the same European competition.

Textor’s Exit and Palace’s Defence
In an effort to comply with UEFA’s ownership rules, Textor sold his 43% stake in Crystal Palace to New York Jets owner and pharmaceutical heir Woody Johnson last month. He also stepped down from his role at Lyon last week.

Lyon had faced provisional relegation in November due to reported debts of up to £200 million, but the successful appeal has further complicated the European qualification picture.

Palace have argued that Textor did not exert controlling influence due to a four-way ownership voting structure, which includes chairman Steve Parish, and American investors Josh Harris and David Blitzer.

Nevertheless, should UEFA confirm Palace’s exclusion, the club are expected to appeal the decision to the Court of Arbitration for Sport (CAS).

Despite the uncertainty, it has been reported that Palace will be permitted to compete in the Conference League even with Blitzer’s shared interest in Danish club Brøndby, who also qualified for the same competition.