Crystal Palace Appeal Europa League Demotion: What It Means for Nottingham Forest and Lyon

Crystal Palace have launched an appeal to the Court of Arbitration for Sport (CAS) against UEFA’s decision to demote them from the Europa League to the UEFA Conference League.

Oliver Glasner’s side had secured qualification for next season’s Europa League after winning the FA Cup in May — the club’s first-ever major domestic trophy.

However, earlier this month, Palace were sanctioned by UEFA for breaching multi-club ownership rules. American businessman John Textor, who holds a significant stake in Crystal Palace, is also the majority owner of Ligue 1 outfit Olympique Lyonnais, who have likewise qualified for the Europa League.

Textor’s Eagle Football Holdings group controls 90% of Lyon and 43% of Palace, although his stake in the Premier League club is currently in the process of being sold to fellow American businessman Woody Johnson, in a deal reportedly worth £190 million.

UEFA’s ruling not only benefits Lyon but could also open the door for Nottingham Forest — who finished seventh in the Premier League last season — to be promoted from the Conference League into the Europa League. However, this remains unconfirmed by UEFA at this stage.

CAS Confirms Palace Appeal
In their appeal to CAS, Crystal Palace are seeking an annulment of UEFA’s decision, and reinstatement into the 2025–26 UEFA Europa League — at the expense of either Lyon or Nottingham Forest.

A statement released by CAS on Tuesday read:

“The Court of Arbitration for Sport (CAS) confirms receipt of an appeal by Crystal Palace FC against UEFA, Nottingham Forest FC (Nottingham Forest), and Olympique Lyonnais (OL) concerning a decision by UEFA to remove Crystal Palace from the UEFA Europa League 2025–2026 due to an alleged breach of multi-club ownership regulations.

“The appeal filed on 21 July 2025 seeks to annul the decision by the UEFA Club Financial Control Body on 11 July 2025, which found Crystal Palace and OL non-compliant with multi-club ownership regulations, and placed Crystal Palace in the UEFA Conference League 2025–2026. Alongside the annulment, Crystal Palace request readmission to the UEFA Europa League 2025–2026 with Nottingham Forest’s admission rejected. In the alternative, Crystal Palace request readmission with OL’s admission rejected.

“The Parties are currently exchanging written submissions in accordance with the arbitration rules governing CAS appeals procedures. Following this process, a hearing will be scheduled. CAS hearings are not open to the public unless agreed by the Court and all Parties.

“This will be an expedited procedure with an operative decision (without grounds) to be rendered on or before 11 August 2025.”

Parish “Devastated” by UEFA’s “Incongruous” Decision
Under UEFA regulations, clubs under the control of the same ownership group are prohibited from competing in the same competition. All clubs were required to submit evidence of ownership restructuring by the deadline of 1 March 2025 — a deadline Crystal Palace failed to meet.

Palace’s four principal shareholders — John Textor, Chairman Steve Parish, David Blitzer, and Josh Harris — met with UEFA’s Club Financial Control Body in Nyon last month to argue that Textor no longer had decisive influence over the club beyond the cut-off date. However, UEFA rejected their defence.

Reacting to the decision, Steve Parish told Sky Sports earlier this month:

“Obviously, we’re devastated. We’re devastated for, most importantly, the supporters. I think the supporters of all clubs should be devastated for us because this is the dream.

“You win a cup — actually win something for the first time in your history — and someone said to me it’s like winning the lottery, going to the counter, and being denied the prize.

“It’s a bad day for football. I think most right-minded football fans will see what a terrible injustice this is for the football club. I dearly hope someone can remedy it, because I genuinely believe nobody in football wants to see this happen.

“As everyone knows, John — or anyone at Eagle Football — didn’t have decisive influence over Crystal Palace. Everybody knows this. We’re not part of a multi-club operation. We have no staff, no players from Lyon, no loans, no transactions.

“We’ve caught a tripwire. We’re caught up in a rule that wasn’t intended for us. It will change. Nobody’s going to stick with this rule. It’s a crazy regulation. I don’t understand how the panel reached this conclusion.

“We proved, beyond all reasonable doubt, that John didn’t have decisive influence over anything at the club — yet they still arrived at this incongruous decision.”

What Could Happen Next for Lyon and Forest?
Should Crystal Palace succeed in their appeal to CAS, they would be reinstated into the 2025–26 UEFA Europa League — casting doubt over the European participation of both Lyon and Nottingham Forest.

Forest are already guaranteed to play in European competition next season. However, a favourable ruling for Palace would likely see Nuno Espírito Santo’s side remain in the UEFA Conference League.

Meanwhile, Lyon — whose relegation from Ligue 1 due to financial mismanagement was recently overturned — could be excluded from European competition altogether, depending on the final CAS verdict.