Why Crystal Palace have been demoted to Conference League and what comes next after Uefa ruling | OneFootball

Crystal Palace have been demoted from the Europa League down to the Conference League next season in what chairman Steve Parish maintains is both “ludicrous” and “the biggest injustice in the history of football”.

Palace had qualified for the Europa League through their FA Cup victory over Man City, a historic first major trophy in the club’s history.

But Uefa has ordered the Eagles to play in the third-tier European competition on Friday for breaching multi-club ownership rules.

It could also mean that Nottingham Forest, initially in the Conference League through their seventh-place finish in the Premier League, could now be promoted to the second-tier of European football in the Europa League.

Here’s how we got here and what comes next, with the Independent’s chief football writer Miguel Delaney, in his latest analysis, arguing that the situation represents a crisis for modern football and that Palace have become an easy target:

Why have Crystal Palace been relegated to the Conference League?

The Eagles have been ordered to drop down to the Conference League by Uefa over multi-club ownership rules breaches.

American businessman John Textor holds a 43 percent stake in Palace and has attempted to sell that stake this summer, though he also holds a majority stake (77 percent) in Lyon, with the French club qualifying for the Europa League through their sixth-place Ligue 1 finish.

Nottingham Forest could now replace the FA Cup winners in the Europa League.

The rules of European football's governing body are devised to clarify a threshold of influence for the same person or entity and that they cannot hold a similar amount in two clubs in the same European competition.

Uefa does allow clubs to restructure multi-club ownership, but the deadline to do so was 1 March 2025, with Palace missing the deadline, likely due to not anticipating their surprise run to FA Cup glory and therefore European qualification.

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Steve Parish, Chairman of Crystal Palace, called the decision an 'injustice' (Getty Images)

Palace have been relegated instead of Lyon because the French club’s place takes priority due to a higher league finish (sixth vs 12th) in the last campaign.

Lyon won their appeal against relegation from Ligue 1 after initially being demoted over financial irregularities. Had they lost the appeal, then Palace would have maintained their place in the Europa League.

Nottingham Forest made a request to Uefa to provide clarity on the situation, with the potential for them to move up to the Europa League. Forest, whose owner Evangelos Marinakis controls Greek side Olympiakos, would not contradict the rules because he diluted his control in the Premier League side.

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John Textor has attempted to sell his stake in Palace (Getty Images)

Textor, who resigned from his leadership position at Lyon, also attempted to do likewise in June, by selling his stake to New York Jets owner Woody Johnson, but the deal has yet to be completed.

What is Crystal Palace’s argument against the ruling?

Palace maintain that Textor does not hold any decisive influence on the club, but this has been rejected by Uefa.

"Everyone knows we're not part of a multi-club set-up," Parish added. "We don't share any staff. We're caught up in a rule that wasn't put there for us. I don't understand why the panel has come to the conclusion they have done. I think we've shown John had no influence over our club.

"This is a ludicrous decision. We will ask the appeal court to listen to our argument."

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Crystal Palace qualified for the Europa League by winning the FA Cup but they have now been demoted by Uefa (Getty Images)

Uefa has said that the Eagles could appeal its ruling through the Court of Arbitration for Sport with Parish determined to do just that.

"We're devastated," Parish told Sky Sports. "It's a bad day for football. It's a terrible injustice. I do believe nobody want to see this. I don't think Uefa wants to see this. We've been locked out of a European competition on the most ridiculous technicality. Supporters of all clubs should be devastated for us."