Is Crystal Palace's Europa League Dream Over?

Crystal Palace's fairy-tale FA Cup triumph over Manchester City in May 2025 secured their place in the Europa League, marking the first significant cup in the 120-year history of the club. Given UEFA's multi-club ownership rules, which prevent teams with shared ownership from playing in the same European contest, their European debut currently hangs in the balance.

American entrepreneur John Textor owns a 43% interest in Palace via Eagle Football Holdings and also 77% of French club Lyon, which qualified for the Europa League. Although Textor consented to sell his Palace shares to New York Jets owner Woody Johnson for roughly £190 million, UEFA has repeatedly postponed its judgment, leaving the Eagles in limbo as pre-season draws close.

Why Crystal Palace Might Not Play in the Europa League

Under UEFA's Article 5 rules on multi-club ownership, which stipulate that no individual or legal entity can have "decisive influence" over two clubs competing in the same European tournament, Crystal Palace's participation in the Europa League is under threat; in short, Crystal Palace might not play in the Europa League. The ownership structure of John Textor produces this conflict: while he holds only 25% of voting power at Palace (despite his 43% equity stake), UEFA regards any ownership above 30% as likely having decisive influence.

When Palace and Lyon qualified for the Europa League, UEFA's rule that the club finishing lower in their domestic league should forfeit their place was set in motion. Theoretically giving Lyon top priority, Palace came 12th in the Premier League while Lyon finished 6th in Ligue 1. Arguing that Textor lacks operational control over the club, Palace has put up a powerful defense. Evidence submitted to UEFA by Executive Chairman Steve Parish and his executive team proved that all decisions are made independently by Parrish and his team; there is no employee sharing, team approach, or joint commercial arrangement with Lyon.

The club claims they are not member of a multi-club model arrangement and run independently. UEFA has repeatedly postponed its judgment notwithstanding these objections and Textor's agreement to sell his Palace stocks to Woody Johnson. Originally postponing a decision set for June 27, then again on June 30, the governing body stated the necessity of waiting for the result of Lyon's appeal against their demotion to Ligue 2.

UEFA Decision on Crystal Palace

The handling of the Crystal Palace case by UEFA has been marked by several delays and process difficulties. Originally set to rule on June 27, the CFCB First Chamber was postponed to June 30 and then indefinitely postponed pending Lyon's domestic appeal.

The complexity stems from Lyon's relegation to Ligue 2 by the financial regulator (DNCG) of French football owing to debts estimated to be between €175-530 million. Lyon signed a settlement agreement with UEFA promising to give up their Europa League spot if their relegation is confirmed, so theoretically clearing the path for Palace.

UEFA has decided, nevertheless, to hold off on deciding finally about Palace's involvement until Lyon's appeal decision is revealed. Officials at Palace are frustrated with this strategy since they feel they are being unjustly punished for their lack of European background relative to Lyon.

Should Palace ultimately be rejected, Nottingham Forest would probably take their Europa League spot. Forest finished 7th in the Premier League, earning a Conference League place, but have already written to UEFA expressing concerns about Palace's eligibility and seeking clarification about possibly being promoted to the Europa League.

Should they be prohibited from the tournament, Palace is said to be ready for legal action; sources claim they would "almost surely initiate a legal fight" against any negative decision. The club believes the delays are unfairly benefiting Lyon while punishing Palace for bureaucratic timing problems.

John Textor's Influence

Though ironically his influence at Crystal Palace seems to have been exaggerated, John Textor's participation has been at the center of all the debate. With his 43% ownership translating to only 25% voting power, with major decisions made by Parish, Josh Harris, and David Blitzer, the American businessman has openly griped over his lack of control at Palace. Declaring officially his resignation from all Lyon leadership posts on June 30, Textor has taken strong action to solve the crisis by agreeing to sell his Palace share to Woody Johnson for about £190–260 million.

He has also withdrawn from the daily affairs of Lyon, Michele Kang taking his place as president. Despite these steps, Textor's impact goes beyond the current ownership question. His financial difficulties at Lyon, where Eagle Football Holdings is said to have debts of £422 million, have clouded the whole picture. French football expert Julien Laurens referred to Lyon's relegation brought on by these financial difficulties as making Textor "one of the worst owners" who has "made this club a mess".

Reactions of stakeholders have been mixed but mostly frustrated. Described as "exasperated" with the delays, Palace chairman Steve Parish is well-known for his opposition to multi-club ownership. Fans have voiced rage at the administrative process, with supporters noting that "they wouldn't handle one of the so-called 'big clubs' in this manner" and decrying the effect on transfer planning.

With players like Eberechi Eze, Marc Guehi, and Jean-Philippe Mateta allegedly sought after by other clubs, the uncertainty has real consequences for Palace's summer preparations. Palace's capacity to prepare for pre-season and plan transfers is compromised by the late choice since they cannot verify which tournaments they will be playing in.

With Palace's European dream hanging critically in the balance, stakeholders expect either a fast resolution following Lyon's appeal or a drawn-out legal battle that might stretch into the new season.