Just weeks ago, Crystal Palace were riding the high of their first-ever major trophy — a dramatic 1-0 win over Manchester City at Wembley in the FA Cup final. It was a landmark moment in the club’s history: their first silverware, and a ticket to European football for the first time.

But now, less than two months on, that dream has been significantly tarnished. Instead of competing in next season’s Europa League, Palace have been demoted to the UEFA Conference League. Nottingham Forest, who finished lower in the Premier League, have taken their place.

At the heart of the matter lies UEFA’s multi-club ownership rules, which restrict clubs under shared ownership or influence from participating in the same European competition.

Palace’s majority shareholder, John Textor, also owns French club Lyon, who qualified for the Europa League by finishing higher in Ligue 1. According to UEFA, Textor’s influence over both clubs created a conflict of interest — and Palace lost out.

Textor has insisted that he does not hold “decisive influence” at Selhurst Park, despite his company Eagle Football Holdings owning 43% of Palace. Speaking to talkSPORT, he said:

However, UEFA disagreed. Their assessment ultimately handed Lyon the Europa League place, and Palace were bumped down a tier.

Palace’s fate was effectively sealed by missing UEFA’s March 1 deadline to restructure ownership in a way that would have eliminated the conflict.

Had Palace taken action — or convinced UEFA that Textor had no control — they might still be in the Europa League. Nottingham Forest, who faced similar issues with owner Evangelos Marinakis and his connection to Olympiakos, did take action: Marinakis placed his Forest shares in a blind trust ahead of the deadline.

Because Olympiakos qualified for the Champions League and Forest didn’t, the Greek side retained their spot — and Forest were next in line for the Europa League. Unlike Palace, they had met UEFA’s compliance timeline.

Behind the scenes, Palace officials have questioned Forest’s role in the final decision. BBC Sport has confirmed that Forest sent a formal letter to UEFA, raising concerns about Palace’s eligibility.

While Palace may see this as opportunistic, Forest’s argument is clear: they complied with UEFA’s rules, and Palace did not.

Forest, now set to make their first European appearance in over two decades, will be grateful for the outcome. But the fallout may well spark a new rivalry between the two clubs.

In late June, Textor agreed to sell his Palace stake — reportedly worth £190m — to American businessman Woody Johnson, owner of the New York Jets. The deal appeared to boost Palace’s case that there was no longer a conflict with Lyon.

However, UEFA had already reached a preliminary conclusion, and insiders say the sale alone was never likely to reverse that. Palace’s main hope rested on UEFA deciding that Textor never held meaningful control — and once that argument failed, their position crumbled.

Palace had briefly been given renewed hope when Lyon were relegated from Ligue 1 in June due to financial irregularities. The demotion would have stripped them of their UEFA license, potentially clearing the path for Palace to re-enter the Europa League.

But that door quickly closed when Lyon won their appeal, allowing them to retain both top-flight status and European eligibility.

The broader context complicated matters. Ligue 1 is already battling declining broadcast revenues. DAZN, one of the league’s major domestic broadcasters, cancelled its five-year, €400m deal after just one season. Relegating a high-profile club like Lyon would only have compounded the commercial blow to French football.

With Lyon reinstated, UEFA’s decision was effectively made — and Palace’s Europa League place was gone.

Palace are now expected to appeal the ruling at the Court of Arbitration for Sport (CAS). While the odds may be slim, the club feels it has a case worth fighting.

Sources within UEFA suggest that Palace’s main misstep was missing the March 1 restructuring deadline, not necessarily the ownership links themselves. Had they acted sooner, their story could have ended very differently.

This episode serves as a stark reminder of the increasing complexity of football ownership, particularly in the age of multi-club investment models.

Crystal Palace went from euphoria at Wembley to boardroom frustration in Switzerland. They may still be in Europe, but the Conference League offers less money, less prestige, and far less satisfaction than the competition they feel they rightfully earned a place in.

And with Forest benefiting, Palace fans may find themselves with a new club to circle on the fixture list — not just for footballing reasons, but as part of a story of missed deadlines, legal battles, and European heartbreak.