Crystal Palace Relegated To Conference League As Nottingham Forest Secure Europa League Spot.
Crystal Palace have been dealt a significant blow after UEFA announced their demotion from the Europa League to the Conference League for the 2025/26 season. The decision, which stems from a breach of UEFA’s multi-club ownership rules, has paved the way for Nottingham Forest to be promoted to the Europa League in their place. The ruling is subject to an appeal, which Palace are widely expected to lodge with the Court of Arbitration for Sport (CAS).
The controversy centres around American businessman John Textor, who holds a 43.9% stake in Crystal Palace and a 77% stake in French club Olympique Lyonnais, both of whom qualified for the Europa League. UEFA regulations prohibit any individual or entity from having significant influence over more than one club in the same competition. With Lyon finishing sixth in Ligue 1—higher than Palace’s 12th-place finish in the Premier League despite their FA Cup triumph—the French club were given precedence, leaving Palace to face the consequences.
Palace had earned their Europa League spot by winning the FA Cup in May 2025, defeating Manchester City in a memorable final at Wembley. It marked their first qualification for a major European competition, making UEFA’s decision all the more devastating for the South London club. Meanwhile, Nottingham Forest, who secured seventh place in the Premier League last season, were originally set to compete in the Conference League but will now step up to the Europa League, pending the outcome of any appeal.
The situation was complicated by Lyon’s own off-field issues. The French club faced relegation to Ligue 2 due to financial irregularities but successfully appealed the decision earlier this week. Had Lyon’s relegation been upheld, they would have been excluded from European competition, allowing Palace to retain their Europa League place. Instead, UEFA’s Club Financial Control Body (CFCB) ruled that Palace’s ties to Lyon through Textor’s ownership violated Article 5 of the UEFA Club Competitions Regulations.
Palace argued that Textor has no decisive influence over the club’s operations, and attempts were made to resolve the issue, including Textor stepping back from his role as Lyon’s president and agreeing to sell his Palace stake to Woody Johnson, owner of the New York Jets. However, these efforts came after UEFA’s 1 March deadline for resolving ownership conflicts, leaving the Eagles vulnerable to sanctions.
The financial implications of the decision are significant. The Europa League’s prize pot is nearly double that of the Conference League, with teams potentially earning up to €32.5m for a successful campaign compared to €3.17m for Conference League participants. For Palace, the demotion also means a two-legged qualifying round starting on 21 August, adding further challenges to their European debut.
Nottingham Forest, on the other hand, are celebrating an unexpected opportunity to compete in UEFA’s second-tier competition. The Reds’ seventh-place finish last season had already marked a remarkable achievement, and their elevation to the Europa League will bring both prestige and increased revenue to the City Ground.
Palace officials are reportedly furious with the ruling and are preparing to challenge it at CAS. A successful appeal could see them reinstated in the Europa League, but for now, their European dreams have been downgraded. UEFA has stated that no final confirmation of Forest’s promotion will be made until any appeal process is complete.
As the situation unfolds, both clubs await further clarity, with Palace fighting to reclaim their place and Forest poised to seize a golden opportunity on the European stage.
