Lyon handed Europa League spot after DNCG ruling sparks regulatory reshuffle
Crystal Palace will not participate in the UEFA Europa League but the Conference League next season despite qualifying on sporting merit.
UEFA confirmed on Wednesday that the Premier League side has been demoted to the UEFA Conference League following a breach of multi-club ownership regulations — a decision that has handed Lyon a lifeline.
The ruling comes after the French football regulator (DNCG) overturned Lyon’s earlier relegation to Ligue 2. On July 9, 2025, the DNCG appeals panel reinstated the seven-time Ligue 1 champions, allowing UEFA to reassess Lyon’s European eligibility. Following this, the UEFA Club Financial Control Body (CFCB) reviewed submissions from both Lyon and Crystal Palace.
As a result of that assessment, UEFA determined that both clubs violated Article 5.01 of the UEFA Club Competition Regulations, which governs multi-club ownership and potential conflicts of interest. Notably, both clubs were linked to American businessman John Textor, who has held stakes in each entity in recent years.
Despite both clubs breaching the rule as of March 1, 2025, UEFA’s First Chamber opted to allow Lyon into the 2025/26 UEFA Europa League while relegating Crystal Palace to the third-tier Conference League. This decision aligns with Articles 5.02, 5.03, and 5.04 of the regulations, which empower UEFA to act in situations involving ownership-related conflicts.
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While Lyon can now begin planning their return to Europe’s second-tier competition, Palace fans will be disappointed after their team’s historic qualification for the Europa League. Although the club remains eligible for continental football, the Conference League represents a downgrade in prestige and financial reward.
The reshuffle has reignited debates around the fairness of UEFA’s multi-club ownership framework. Critics argue that clubs with shared investors should not be punished if they qualify through performance, while others stress the importance of preserving the integrity of European competitions.
Palace, for their part, have yet to release an official response, though legal recourse may be considered in light of the ruling.
Meanwhile, Lyon’s reinstatement serves as a massive boost, both financially and competitively, after a tumultuous summer that nearly saw them dropped from France’s top flight.
As UEFA continues to tighten its grip on ownership structures, clubs with shared financial backing will need to tread more carefully or risk similar outcomes in the future.
Tags: UEFA, Crystal Palace, Lyon, Conference League, Europa League, #UEL, #UECL, John Textor.
