Crystal Palace’s appeal against UEFA’s demotion decision has been rejected by the Court of Arbitration for Sport (CAS), confirming the Premier League club’s placement in next season’s UEFA Conference League.

The ruling stems from UEFA’s July 11 ruling that Palace breached multi-club ownership regulations when American businessman John Textor maintained control over both Crystal Palace and French side Olympique Lyonnais past UEFA’s March 1 compliance deadline. Textor, who acquired a 29% stake in Palace in December 2023, sold his shares to New York Jets owner Woody Johnson in late July, but CAS determined the ownership overlap during the critical assessment period rendered Palace ineligible for the Europa League.

In a 10-hour hearing held in Lausanne on August 9, CAS upheld UEFA’s sanctions, dismissing Palace’s claims of unfair treatment compared to Nottingham Forest and Lyon. The arbitration panel emphasized UEFA’s regulations lack flexibility for non-compliant clubs, regardless of subsequent ownership changes.

Consequences of the ruling include:

  • PALace must compete in a playoff round against Norwegian side Fredrikstad or Danish club Midtjylland on August 21-28
  • Nottingham Forest is projected to fill Palace’s vacated Europa League spot
  • UEFA’s official draws for both competitions will be conducted in Monaco on August 29

Chairman Steve Parish acknowledged the decision after Palace’s 3-2 Community Shield victory over Liverpool, stating, “We’ll explore all available avenues,” though legal experts suggest further appeals would face uphill battles. The ruling caps a turbulent summer for Palace, which initially secured Europa League qualification via May’s FA Cup triumph over Manchester City.

UEFA’s timeline reveals:

  • March 1: Ownership structure compliance deadline
  • June 3: Private discussions between Palace and UEFA in Switzerland
  • June 9: Nottingham Forest’s formal warning to UEFA about potential conflicts

The CAS ruling noted Textor’s dual influence over Palace and Lyon from December 2023 through UEFA’s assessment period, directly violating Article 21.02 of UEFA’s Financial Fair Play regulations. This marks the first time CAS has upheld such a demotion case since the multi-club ownership rules were introduced in 2021.

As Palace prepares for their August 24 Premier League opener against Brentford, attention now turns to their Conference League campaign. Meanwhile, UEFA has confirmed they will investigate potential ownership breaches involving Olympique Lyonnais and Nottingham Forest as part of their ongoing monitoring process.