Premier League side Crystal Palace have been dropped in European competition to the third-tier Conference League in a multi-club ownership case, while Olympique Lyonnais will be allowed to play in the Europa League, Uefa said on Friday.
Palace had qualified for the Europa League by winning the FA Cup last season, while Lyon reached the competition by finishing sixth in Ligue 1.
A move to relegate them to France's domestic second-tier Ligue 2 over their poor finances was overturned on Wednesday, a decision Uefa's Club Financial Control Body (CFCB) had been waiting for before ruling on the multi-club ownership case.
"Consequently, the CFCB First Chamber pursued the assessment of the documentation submitted by Olympique Lyonnais and Crystal Palace and concluded that the clubs breached, as at 1 March 2025, the multi-club ownership criteria," Uefa said in a statement.
As both Lyon and Palace had qualified for the Europa League, the French club were allowed to keep their place as they finished higher in their respective league, with Palace finishing 12th in the Premier League.
The Eagle Football Group are majority owners of Lyon while its chairman John Textor also owns a controlling stake in Palace. Textor later resigned from Lyon's board of directors with Michele Kang appointed chairwoman and president.
🚨 OFFICIAL: UEFA announce Crystal Palace won’t be playing in the Europa League next season.
— Fabrizio Romano (@FabrizioRomano) July 11, 2025
Palace to play in the Conference League per UEFA rules. pic.twitter.com/kuiGpiQVGq
Palace said last month that New York Jets co-owner Robert Wood "Woody" Johnson had signed a legally binding agreement to buy Eagle Football Holding's stake in the Premier League club, subject to approval from the Premier League.
However, Palace had missed the March deadline to comply with the multi-club ownership rules.
TEXTOR 'STUNNED'
"Honestly, I am stunned. We did everything possible to separate from the club, as Uefa would ask, with a sale process that began before the deadline, and a sale that will occur well before the draw," Textor told Reuters.
"Now we have sold out of a club that I love, to help Palace fans continue this dream year, only to have another off-the-pitch decision lay waste to an historic sporting victory."
Lyon had been demoted by the DNCG, French football's financial watchdog, in November due to the poor state of their finances but their relegation to Ligue 2 was overturned by its appeals committee.
Palace can still appeal the decision at the Court of Arbitration for Sport but if Uefa's decision stands, the rules could allow Nottingham Forest to play in the Europa League if they fulfil the admission criteria.
Forest had finished seventh last season and originally qualified for the Conference League while fifth-placed Aston Villa and Palace had qualified for the Europa League.
The rules say no club may hold or deal in securities or shares of any other club participating in Uefa's competitions and that no club can be a member of any other club participating in Uefa competitions.
Furthermore, no one person has the power to be simultaneously involved in management, administration and/or sporting performance of any club and they must not have any control or decisive influence over more than one club.