Palace Grounded as CAS Confirms Europa League Demotion

From FA Cup glory to Conference League reality, Crystal Palace’s European journey takes an unexpected turn after losing their final appeal

Palace Left Grounded as CAS Rules Against Europa League Appeal

In the space of just a few months, Crystal Palace have gone from the euphoria of an FA Cup triumph to the frustration of being told their European adventure will begin a rung lower than expected. The Court of Arbitration for Sport has delivered its verdict, siding with UEFA and confirming that the Eagles will not compete in the Europa League this season. Instead, they will start their continental campaign in the UEFA Conference League. For the supporters, and indeed the club’s hierarchy, it is a bitter pill to swallow.

From Wembley Glory to European Disappointment

Palace’s path to this moment began on a bright May afternoon when they stunned Manchester City to lift the FA Cup at Wembley. Eberechi Eze’s winner that day etched his name into club folklore, securing not only silverware but also a ticket to the Europa League. It was the kind of achievement that fans dream about, a reward for years of steady building under Steve Parish’s leadership.

However, the celebrations barely had time to settle before UEFA raised a red flag. The governing body cited its multi-club ownership rules, noting that as of the crucial assessment date on 1 March, American businessman John Textor held shares in both Palace and French side Lyon. Both clubs had qualified for the Europa League, creating a direct conflict under UEFA regulations designed to prevent potential collusion.

Palace maintained that Textor’s involvement did not amount to decisive influence. By late June, the 43 per cent stake had been sold to New York Jets owner Woody Johnson, and Textor had stepped away. But the rules were crystal clear. UEFA’s decision on 11 July demoted Palace to the Conference League, replacing them with Nottingham Forest in the Europa League. Palace immediately lodged an appeal with CAS.

The Case in Lausanne

The appeal hearing in Lausanne was a marathon session, stretching over ten hours. Steve Parish and his team argued their case, highlighting what they saw as inconsistencies in how the regulations were applied. They claimed that Nottingham Forest had been afforded greater flexibility when their owner Evangelos Marinakis placed the club in a blind trust before restoring full control later. Palace also suggested that UEFA had not communicated rule changes or deadline extensions equally to all clubs.

Despite these arguments, CAS was unmoved. The panel found that Textor had held decisive influence over both Palace and Lyon at the relevant date. They rejected the claim that Palace had been treated unfairly compared to Forest or Lyon, reiterating that the rules leave no room for exceptions once a club is deemed non-compliant. The judgement confirmed that Palace would compete in the Conference League for the 2025-26 season.

A Costly Setback

The financial implications are significant. Estimates suggest that missing out on the Europa League could cost Palace up to £20 million in prize money, broadcast revenue and matchday income. The Conference League still offers a European platform, but the exposure and prestige are undeniably lower. For a club that has worked hard to elevate its profile domestically and abroad, the loss stings.

Steve Parish has not ruled out further action. Speaking after Palace’s Community Shield victory over Liverpool, he admitted that the club would explore every possible avenue to challenge the outcome. Whether that means pursuing legal claims for compensation or lobbying for rule changes in future remains to be seen. The frustration is palpable, not only in the boardroom but among supporters who had already begun planning trips to some of Europe’s more illustrious footballing cities.

How Forest Benefited

Nottingham Forest’s rise into the Europa League at Palace’s expense adds an extra twist. Like Palace, Forest’s ownership structure initially posed a problem under UEFA rules. Evangelos Marinakis also owns Olympiakos, and with both clubs in European competition, a conflict seemed likely. However, Marinakis acted ahead of the March deadline, placing his Forest shares into a blind trust before later reclaiming control when their European route changed.

Palace argue that this flexibility was not made clear to them and that they could have taken similar steps had they been aware of any possible extensions to the compliance deadline. CAS, however, deemed this irrelevant to the core issue, which was the state of ownership and influence as of the official assessment date. It is a fine line, but one that has made all the difference in determining who plays where this season.

What Lies Ahead for Palace

The Conference League presents a different sort of challenge. Palace will face either Fredrikstad of Norway or Denmark’s Midtjylland in a play-off later this month. Win that tie, and they could still enjoy memorable nights under the Selhurst Park lights, testing themselves against continental opposition. While the glamour and financial rewards of the Europa League are missing, there is still the potential for growth and adventure.

Manager Oliver Glasner will need to rally his squad, ensuring that the off-field disappointment does not seep into their on-field performances. Winning the Community Shield, particularly against a Liverpool side that dominated under Arne Slot last season, shows the quality Palace possess. The task now is to channel that spirit into both domestic and European campaigns.

The Broader Implications

This case has put UEFA’s multi-club ownership regulations firmly under the microscope. The rules are intended to safeguard the integrity of competitions, but their rigid application leaves little room for context or nuance. As football’s ownership structures become increasingly complex, with investors spreading their stakes across multiple clubs and continents, these regulations will be tested more frequently.

Palace’s fate is a reminder that even well-managed clubs can find themselves caught in the crossfire. It also raises questions about transparency and communication from football’s governing bodies. If some clubs are receiving clearer guidance or more flexibility than others, it could undermine the very fairness the rules are designed to protect.

For Palace, this season will be a test of resilience. The supporters have been given a taste of glory with the FA Cup win, and expectations have been raised. Competing in the Conference League instead of the Europa League is not what anyone at the club wanted, but it still offers a platform to build on last season’s successes. A deep run in Europe’s third-tier competition, combined with another strong domestic showing, could ensure that this summer’s setback becomes a footnote rather than a defining chapter.

Final Whistle

Crystal Palace’s demotion from the Europa League to the Conference League is a stark example of how football’s off-field politics can shape on-field destinies. The club’s achievements on the pitch, from lifting the FA Cup to winning the Community Shield, remain untarnished, but their European journey has been rerouted.

In the coming weeks, all eyes will be on how Palace respond. Success in the Conference League will not erase the frustration of this ruling, but it could still give the fans nights to remember. For now, the dream of Europa League football will have to wait, and Selhurst Park must prepare to welcome a different set of European visitors.