The news Crystal Palace had been dreading was delivered mid-afternoon on Friday.

European football’s governing body, UEFA, contacted the London club confirming they had been barred from entering next season’s Europa League. They had, as the subsequent public statement stated, “breached, as at 1 March 2025, the multi-club ownership criteria foreseen in Article 5.01 of the UEFA Club Competition Regulations”.

Palace will instead compete in Europe’s third-tier competition, the UEFA Conference League — a far less lucrative and prestigious tournament. Provided, that is, they first navigate a two-leg qualifying tie next month. It feels like scant reward for lifting the FA Cup, the first major trophy in the club’s century-plus history.

Those jubilant scenes at Wembley Stadium after beating Manchester City in May feel distant now; the delight replaced by a sense of burning injustice or even outrage. That emotion will fuel an appeal at the Court of Arbitration for Sport (CAS), most likely next week, though there is realism within the club as to whether that last desperate attempt to preserve their Europa League place will prove successful.

“We’re devastated,” chairman Steve Parish told the UK’s Sky Sports News on Friday, calling the decision a “terrible injustice” and saying Palace had been denied by “the most ridiculous technicality you can imagine”.

“This is the dream,” he said. “(But) someone said to me it’s like winning the lottery and going to the counter (to show your ticket), but you don’t win the prize. So I’m devastated for the players, the fans and the staff. It’s a bad day for football.”

🗣️ “We’re devastated, it’s a terrible injustice for the club”

Crystal Palace chairman Steve Parish on UEFA’s decision to demote the club from the Europa League to the Conference League 🔴🔵 pic.twitter.com/E2kOjyQxKV

— Sky Sports News (@SkySportsNews) July 11, 2025

Palace finished 12th (of 20) in the 2024-25 Premier League but originally fulfilled the criteria to qualify for the Europa League by winning the FA Cup on May 17. Seven days later, Paris Saint-Germain, already Ligue 1 champions, defeated Reims to win the French equivalent.

That meant the last Europa League qualification place for French clubs was awarded not to the cup winners, who had already qualified for the Champions League, but instead to the side who came sixth in their top flight: Lyon.

Suddenly, Palace had a problem.

Lyon’s majority owner, the Eagle Football organisation, led by U.S. businessman John Textor, also has a 43 per cent stake in the new FA Cup holders. UEFA said this breached Article 5 of its rules, referring to multi-club ownership (MCO) and restricting teams from the same multi-club groups playing in the same competition. Instead of Palace, Lyon would be granted entry to the 2025-26 Europa League because they finished higher in their domestic league.

“John and Eagle Football didn’t have decisive influence (over Palace),” said Parish on Friday. “I don’t know anyone’s phone number there (at Lyon). It’s an incredible travesty of justice.”

Palace’s players celebrate what proved to be their winning goal at Wembley (Ed Sykes/Sportsphoto/Allstar via Getty Images)

Textor’s relationship with Palace has been far from straightforward over his four-year involvement. The American engaged the investment banking group Raine last summer to begin the process of a sale of Eagle’s stake and has spent the past year in discussions with multiple parties interested in buying his shares. He even granted two interested groups differing forms of exclusivity in January.

But, while courting potential suitors for his slice of Palace, he was simultaneously still seeking a pathway to secure a controlling stake in them to become a flagship club to front Eagle.

That never happened.

Instead, this is the story of how Palace were denied their chance in the Europa League.

Textor arrived at Palace in 2021.

He had originally hoped to purchase a controlling stake in the Premier League side, only to be persuaded to buy 40 per cent instead. He became the fourth general partner, alongside Parish and fellow American businessmen Josh Harris and David Blitzer, investing around £87.5million (now $118m) into the club.

The size of his stake has fluctuated marginally in the time since, but by last season it was around 43 per cent.

Lyon fans protest against Textor’s ownership (Jeff Pachoud/AFP via Getty Images)

He established Eagle Football, a multi-club vehicle, in November 2022 with Belgian side Molenbeek and Botafogo from Brazil also in the stable. Eagle purchased a controlling stake in Lyon, seven-times winners of the French title, that December.

Parish and Textor have seldom been aligned in their views over the running of Palace or, indeed, MCO models, but the issue largely bubbled away under the surface until the Selhurst Park club did the unthinkable and actually won a trophy.

When it comes to MCO, UEFA had imposed a new deadline of March 1 for clubs to ensure that “no individual or legal entity may have control or influence over more than one club participating in a UEFA club competition… (and no one club is) able to exercise by any means a decisive influence in the decision-making of the club.”

UEFA circulated details of this new position to clubs across Europe at the start of the year. Parish claimed the notification of the change had initially been sent to the club’s general enquiries email address, and had not initially even been seen by people at Palace. “We’re not in UEFA’s orbit,” he said. “There isn’t a group that represents clubs like us at UEFA. In 15 years (in charge of Palace), I’ve never had an email from UEFA, not one.

“They sent a notification that this rule change was coming to info@cpfc.co.uk, and nobody saw it, so they kept sending it and sending it again. This was in January.”

Parish initially took over at Palace in 2010 (Sebastian Frej/MB Media/Getty Images)

Regardless, the sense within the club was that Textor did not have decisive influence — Eagle may have had a 43 per cent stake, but each of the four general partners (Textor, Parish, Harris and Blitzer) has 25 per cent of the voting rights — so there was not really a problem.

Textor himself, according to those close to him, was not so sure UEFA would see things that way.

In the midweek before PSG were due to face Reims in that Coupe de France final, he travelled to Bilbao seeking a private audience with senior UEFA executives ahead of the Europa League final in the Spanish city between Manchester United and Tottenham Hotspur, but emerged from those conversations far from reassured.

Textor watching Botafogo at the Club World Cup in the U.S. this summer (Franck Fife/AFP via Getty Images)

After PSG beat Reims, all four of Palace’s general partners, who may share weekly calls but infrequently come together in one place, flew to Nyon, Switzerland, to present their case to UEFA’s club financial control body (CFCB).

Palace explained the quirks of their ownership structure to the CFCB, according to those familiar with the talks, who are have been granted anonymity — like others in this article — to protect relationships. They laboured the point that Textor and Eagle did not have decisive control because each general partner had equal voting rights, with Harris and Blitzer tending to side with Parish, leaving Textor as the odd one out.

They laid out the decision-making process at the Premier League club and said the ones running things were actually Parish, the club’s sporting director at the time Dougie Freedman and the manager Oliver Glasner.

“We sat in front of the UEFA panel and were all consistent about the lack of decisive influence,” Textor told UK radio station Talkport on Thursday. “I told UEFA that a suggestion is not decisive influence. Nobody tells Steve (Parish) what to do. He’s as stubborn as anybody.”

They pointed to an absence of co-operation with the other clubs in Eagle’s stable, and to Textor’s willingness to sell his Palace shares as an indication of how frustrated he had become at his lack of real influence there. Palace also told UEFA that Textor was, at best, an infrequent attender of their matches, instead spending more time at Molenbeek, Lyon and Botafogo. If he had decisive influence, then, they argued, he would have been more present at Selhurst Park and also at the team’s away fixtures.

Palace also voted for a moratorium on player loans between clubs with the same owners at a Premier League meeting in November — with Textor angered by that decision, even if the proposal was ultimately rejected. That, they hoped, was further evidence in their favour.

At the end of that meeting in Nyon, there was a belief that they had presented a convincing case. Perhaps, too, UEFA would take into account that fact of Textor last year engaging Raine — an indication he was open to selling up. Textor shared Palace’s confidence.

When further information was requested by the CFCB in respect of the sales process to find a buyer for Eagle’s Palace shares, it was greeted as a positive sign.

Harris and Blitzer, right, two of Palace’s four general partners, photographed in 2021 (Cindy Ord/Getty Images for Wollman Rink NYC)

The other complication was Lyon.

They had been provisionally relegated to Ligue 2 in November by the DNCG (French football’s financial authority) and, when it was deemed they had failed to satisfactorily improve their financial situation in the period since, that demotion became active. Although they were approved by UEFA to compete in the Europa League, the conditions of their licence decreed that, if they were relegated to the second tier, they would not participate in any UEFA tournament.

Yet Lyon were not going to fall out of the top flight without a fight.

Textor subsequently stepped back from his role there, and, after they received the formal decision and reasoning from the DNCG almost a week later, the club appealed the decision. UEFA’s CFCB opted to postpone making their own ruling, pending the outcome of that appeal.

Lyon’s hearing took place on Wednesday, when it was confirmed their appeal had been successful. The French club’s Europa League participation next season was assured.

Palace put lawyers on standby to take their case to CAS. The focus was solely on the Europa League — not the Conference League — as a result of their belief they would be admitted by UEFA via Lyon’s financial issues or the knowledge that Textor did not have decisive influence at Selhurst Park.

They were wrong, and Palace will now look to any possible avenue to overturn the decision, with a club statement outlining their next steps.

It reads: “We will continue to press our case and work with UEFA to achieve the fair and just outcome so that we may take our rightful place in the Europa League, as well as taking legal advice to consider our options, including an appeal to the Court of Arbitration for Sport.”

The wait for a definite conclusion continues, and Palace will desperately hope they can find a way to overcome what Parish describes as a “gross injustice” to be reinstated to what they see as their rightful place in the league phase of UEFA’s second-tier club tournament (Nottingham Forest, who were bound for the Conference League qualifiers after their seventh-place Premier League finish last season, could now be bumped up into the Europa League instead).

“We have to be strong and find a way through it, and we will,” said Parish. “But that’s not until we’ve exhausted every single avenue to ensure we get the right people to try to do the right thing.”

(Top photo: Josh Harris with head in hands, Steve Parish and John Textor at Wembley; Mike Hewitt/Getty Images)