Crystal Palace Lose CAS Appeal, Europa League Demotion to Uphold

Crystal Palace’s bid to overturn their demotion from the Europa League has failed. The Court of Arbitration for Sport (CAS) have rejected their appeal on Monday. The decision confirms that Nottingham Forest will take Palace’s place in the Europa League.

Meanwhile, the FA Cup winners will drop to the UEFA Conference League. UEFA’s ruling centred on breaches of multi-club ownership (MCO) regulations. Former Palace shareholder John Textor held 43% of the Premier League club through Eagle Football Holdings.

Notably, he is also the majority owner of French side Lyon. The French side had also qualified for the Europa League. Under UEFA rules, no individual or entity can exert ‘decisive influence’ over more than one club in the same competition. This led to Crystal Palace suffering a demotion.

BREAKING: Crystal Palace have lost their CAS appeal and will not play in the Europa League next season 🚨 pic.twitter.com/989k9tjJjG
— Sky Sports News (@SkySportsNews) August 11, 2025

CAS Verdict and UEFA Rules

Palace argued in their appeal to CAS that Textor had no influence over their operations. Textor had sold his stake to New York Jets owner Woody Johnson in June. However, UEFA’s assessment date of 1 March 2025 was decisive. CAS found that at that time, Textor still had shares and board-level influence at both Palace and Lyon.

The panel dismissed comparisons to Nottingham Forest and Lyon. They stated that regulations ‘are clear and do not provide flexibility to clubs that are non-compliant on the assessment date.’ The south London club also contended that they were treated unfairly. They pointed out that only members of the European Club Association were informed of an extension.

Also Read: Nottingham Forest close in on James McAtee after transfer breakthrough

They said that the MCO compliance deadline could be extended to 31 May. This was an extension Nottingham Forest’s owner used to restructure his control. CAS rejected this argument, citing precedent from recent appeals by Drogheda United and FC DAC 1904 Dunajská Streda, which were also dismissed.

Impact on Crystal Palace and Nottingham Forest

The ruling means Palace will face either Fredrikstad (Norway) or Midtjylland (Denmark) in the Conference League playoff round later this month. Nottingham Forest, who finished seventh in the Premier League, will be promoted to the Europa League even though initially they qualified for the Conference League.

Also Read: Marc Guehi Transfer News: Liverpool Handed Major Boost in Pursuit of Crystal Palace Defender

Speaking after Sunday’s Community Shield win over Liverpool, Palace chairman Steve Parish expressed his disappointment and hinted at possible next steps. He said, “I’m determined that we get the right outcome – if we don’t, we’ll have to look at if there’s any steps after that.”

The club estimates missing out on the Europa League could cost up to £20 million and is considering legal action against UEFA for compensation. UEFA displayed stricter enforcement of MCO rules with this. Palace became one of several clubs in Europe to be excluded from continental competition under the revised March 1 compliance deadline.

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Europa League

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Moumita Dutta

soccer

Football writer at The Playoffs. I’ve been obsessed with the beautiful game since I was a kid.. Eventually, I realized I could combine my passion for writing with my love for football, and I’ve never looked back. My favorite part of the job is everything—when you’re doing what you love, even a late-night deadline feels like extra time in a thrilling cup final. Lastly, Lionel Messi is the GOAT.