Crystal Palace's appeal against UEFA's multi-club ownership ruling was dismissed by the Court of Arbitration for Sport on Monday. The London club will remain demoted to the Conference League instead of competing in the Europa League this season.
The demotion stems from Palace breaching UEFA rules involving former part-owner John Textor's shares in both Crystal Palace and French club Lyon. Palace missed the crucial 1 March deadline for Textor's shares to be placed in a blind trust arrangement, with UEFA finding that Textor had "decisive influence" over Palace after chairman Steve Parish was extensively cross-examined.
Nottingham Forest will now be promoted from the Conference League to take Palace's place in the Europa League. Forest had been named as respondents to the appeal since they stood to benefit directly from Palace's demotion.
Court Decision Details
The CAS hearing took place on 8 August in Lausanne, Switzerland, with Palace having filed their appeal on 21 July. The panel comprised Prof Luigi Fumagalli (Italy, President), Mr Manfred P Nan (Netherlands), and Mr Olivier Carrard (Switzerland), as the Nottingham Post reports.
Lyon retained their Europa League place over Palace due to "sporting merit" despite originally finishing sixth in Ligue 1. The French club only qualified after Paris Saint-Germain won the French Cup, allowing the Europa League place to drop down a league position - by which point Palace had already beaten Manchester City in the FA Cup final to secure their original Europa League qualification.
Timing Questions
The timing creates a peculiar situation, as US investor Woody Johnson purchased Textor's shares on 24 July - meaning the core issue was resolved before the football season began, as The Independent reports. Some of football's most senior legal minds expressed surprise at the outcome, particularly when Palace had appeared to be operating on the understanding that Textor's stake could be sold after 1 March.
Palace achieved the direct route into the Europa League by beating Manchester City in the FA Cup final, whilst Lyon only qualified after PSG's French Cup victory created a vacant spot. This makes UEFA's "sporting merit" decision particularly contentious given Palace's more direct qualification path, according to The Independent.
Regulatory Concerns
Legal expert Mark O'Neill highlighted concerns about "selective enforcement" of multi-club ownership rules, as The Independent reports. He noted that more prestigious clubs like Manchester United and Manchester City have been allowed to compete using blind trusts, while Palace's approach of Textor selling his stake wasn't considered sufficient by UEFA.
The decision comes as the Court of Arbitration for Sport faces new uncertainty following a recent European Court of Justice ruling, The Independent reports. CAS decisions can now be reviewed by national courts to ensure they align with European law, potentially opening new legal avenues for Palace to seek compensation.
Palace will begin their Conference League campaign with a play-off against either Norway's Fredrikstad or Denmark's Midtjylland. Chairman Steve Parish said on Sunday that "we'll have to look at if there's any steps after that now they haven't got the decision they wanted," with the club likely to carry a sense of grievance into the competition.
Sources used: "PA Media", "The Independent", "Nottingham Post" Note: This article has been edited with the help of Artificial Intelligence.
