Last month, UEFA's Club Financial Control Body (CFCB) determined Crystal Palace had excessively close ties with Lyon, violating multi-club ownership (MCO) regulations.
 |
Crystal Palace players celebrate their FA Community Shield win at Wembley Stadium in London, England on 10/8. Photo: AP |
Crystal Palace players celebrate their FA Community Shield win at Wembley Stadium in London, England on 10/8. Photo: AP
Crystal Palace's appeal to CAS rested on three arguments: the CFCB's decision was unjust, Nottingham Forest's promotion to the Europa League was unwarranted, and Lyon's participation should be disallowed. All three points were rejected.
As a result, Nottingham Forest benefits, moving up from the Conference League to compete in the Europa League. Crystal Palace will now play in the Conference League play-off round later this month against the loser of the Europa League qualifier between Fredrikstad and FC Midtjylland.
The CAS ruling came just a day after Crystal Palace’s first FA Community Shield win against Liverpool. Chairman and co-owner Steve Parish stated the club would consider its next steps. "If we don't get the outcome we desire, we will look at other solutions," he said.
 |
Crystal Palace lifts the FA Cup trophy after defeating Man City 1-0 in the final at Wembley Stadium in London, England on 17/5/2025. Photo: Reuters |
Crystal Palace lifts the FA Cup trophy after defeating Man City 1-0 in the final at Wembley Stadium in London, England on 17/5/2025. Photo: Reuters
Crystal Palace initially qualified for the Europa League by winning the FA Cup final 1-0 against Man City in May. A week later, PSG's victory in the French Cup bumped Lyon up from the Conference League to the Europa League.
According to MCO regulations, if two clubs are in violation, the higher-ranked team in their domestic league qualifies for European competition regardless of cup performance. Therefore, despite Palace finishing 12th in the Premier League and winning the FA Cup, while Lyon finished 6th in Ligue 1, the Europa League spot went to the French club.
The core issue lies with American businessman John Textor, who, through Eagle Football Holdings Limited, controls Lyon and owned 43.9% of Crystal Palace. While the Premier League club insisted Textor wasn't involved in club operations, UEFA prohibits any individual or entity from owning over 30% of more than one club in the same competition.
Textor sold his Crystal Palace shares to Woody Johnson, owner of the New York Jets, last month. However, UEFA's assessment was based on the ownership structure as of 1/3, when Textor still held shares and influence in both clubs.
CAS affirmed, "Textor held shares in both Crystal Palace and Lyon and was a board member with decisive influence at both clubs at the time of UEFA's assessment". The court also dismissed arguments that Crystal Palace was treated unfairly compared to Nottingham Forest and Lyon, emphasizing the clarity of UEFA's regulations and the absence of exceptions.
 |
John Textor before Lyon's 2-3 loss to PSG in Ligue 1 on 23/2/2025. Photo: Reuters |
John Textor before Lyon's 2-3 loss to PSG in Ligue 1 on 23/2/2025. Photo: Reuters
Prior to this summer, no club had been excluded from European competitions due to MCO violations. Crystal Palace is the third case affected by UEFA's stricter enforcement, requiring compliance by 1/3 instead of the previous deadline of 3/6.
Drogheda United (Ireland) was removed from the Conference League due to an ownership conflict with Silkeborg IF (Denmark), while Gyori ETO (Hungary) replaced FC DAC 1904 Dunajska Streda. Both Drogheda and FC DAC 1904 appealed to CAS and lost.
Drogheda's case closely mirrors Crystal Palace's, also contesting the 1/3 deadline and alleging unfair treatment by UEFA. CAS's rejection of the Irish club's appeal set an unfavorable precedent for Crystal Palace.
Both Crystal Palace and Drogheda argue that the new deadline unfairly disadvantages clubs with fewer opportunities to qualify for European competitions. By the 1/3 deadline, Crystal Palace hadn't yet reached the 5th round of the FA Cup, and while Drogheda knew they had a European spot, Silkeborg's qualification remained uncertain, only secured after winning a relegation play-off in Denmark.
Previously, Club Leon (Mexico) was also excluded from the FIFA Club World Cup due to an ownership conflict with Pachuca, highlighting a trend of stricter MCO enforcement by football governing bodies.
Hong Duy (ESPN)
