Crystal Palace receive huge Europa League encouragement after John Textor's Lyon forcibly relegated from Ligue 1 over financial concerns

The Ligue 1 club - majority-owned by the Eagle Football Holdings company chaired by American businessman John Textor - was officially demoted to Ligue 2 after failing to satisfy French football’s financial watchdog, the DNCG (Direction Nationale du Contrôle de Gestion), despite months of negotiation and attempted remedies. The ruling found that the club had not demonstrated sufficient progress in resolving its estimated €500 million (£418m) debt crisis. However, Lyon is likely to appeal the decision at the Court of Arbitration for Sport (CAS) to seek relief.

To comply with UEFA’s multi-club ownership regulations, Textor agreed to sell his 43 per cent ownership in Palace to fellow American investor Woody Johnson. This transaction, though not finalised before UEFA’s critical March 1 deadline, is intended to eliminate any conflict of interest between Lyon and Palace, both of whom secured Europa League qualification; the French side through Ligue 1 standings and the English club by virtue of winning the FA Cup. But with Lyon now relegated to Ligue 2, it should clear any potential competition-specific obstacle for Palace to participate in the Europa League.

If the CFCB determine that the rules have been violated due to Textor's multiple ownership of clubs, Palace could be redirected to the Europa Conference League instead of the Europa League. In that scenario, Palace will challenge the decision at the CAS, arguing that Textor’s exit from the club’s ownership renders any concerns about dual control moot.

On the other side of the argument, Nottingham Forest, who would stand to inherit Palace’s Europa League spot in the event of their disqualification, are reportedly monitoring the situation closely. Should UEFA allow Palace to remain in the competition, Forest could also take their case to CAS, citing UEFA’s firm ownership deadline of March 1 as grounds for appeal.

The rules, as they currently stand, do not offer flexibility for changes in ownership structure that occur after this cut-off date, regardless of intentions or subsequent compliance. This precedent was enforced in a previous case involving Drogheda United, whose exclusion from the Europa Conference League was upheld by the CAS due to similar concerns related to shared ownership with Denmark’s Silkeborg. Only a long-drawn legal battle in the CAS will break the current deadlock between Palace and UEFA.