Crystal Palace dropped to UEFA's Conference League amid Lyon conflict

Premier League side Crystal Palace have been demoted from the Europa League to the Conference League in a multi-club ownership case, UEFA confirmed on Friday.

Meanwhile, Olympique Lyonnais will be permitted to play in the Europa League.

Palace made it to the Europa League by winning the FA Cup in 2024-25, while Lyon finished sixth in Ligue 1 to reach the competition.

After the decision to relegate them to France's domestic second-tier Ligue 2 over their poor finances was overturned on Wednesday, UEFA's Club Financial Control Body (CFCB) gave the ruling on the multi-club ownership case.

"Consequently, the CFCB First Chamber pursued the assessment of the documentation submitted by Olympique Lyonnais and Crystal Palace and concluded that the clubs breached, as at 1 March 2025, the multi-club ownership criteria," UEFA said in a statement.

As both Lyon and Palace were eligible to play in the Europa League, the French club were allowed to keep their place because of their better position in their respective league, with Palace finishing 12th in the Premier League.

John Textor, the majority owner and chairman of Eagle Football Group, is also the majority owner of Lyon while also owning a controlling stake in Palace. Textor later resigned from Lyon's board of directors, with Michele Kang appointed chairwoman and president.

UEFA's regulations take issue with any dual holding above 30%, though Palace denied that, saying Textor had no role in the running of the English club.

Palace last month also said that New York Jets co-owner Robert Wood "Woody" Johnson had signed a legally binding agreement to buy Eagle Football Holding's stake in the Premier League club, subject to approval from the Premier League.

However, Palace had missed the March deadline to comply with the multi-club ownership rules.

Textor said that he is stunned by the decision, and they did everything possible to separate from the club.

"Honestly, I am stunned. We did everything possible to separate from the club, as UEFA would ask, with a sale process that began before the deadline, and a sale that will occur well before the draw," Textor said.

"Now we have sold out of a club that I love, to help Palace fans continue this dream year, only to have another off-the-pitch decision lay waste to an historic sporting victory."

French football's financial watchdog (DNCG), in November, demoted Lyon due to the poor state of their finances, but their relegation to Ligue 2 was overturned by its appeals committee.

The Palace can still appeal the decision at the Court of Arbitration for Sport.