Crystal Palace’s place in next season’s Europa League remains unresolved after UEFA confirmed a delay in their final ruling, opting to wait on the outcome of Lyon’s appeal against relegation from Ligue 1.

The uncertainty stems from UEFA’s multi-club ownership rules, which prohibit two clubs with the same majority owner from competing in the same European competition. Palace earned their Europa League berth by winning the FA Cup, but co-owner John Textor also holds a 77% stake in Lyon—who themselves qualified via a sixth-place league finish.

To alleviate the conflict, Textor agreed to sell his 44% stake in Palace to New York Jets owner Woody Johnson. Yet, despite this move and Lyon’s recent financial crisis, UEFA has chosen not to rule—at least not yet.

Last week, Lyon were relegated to Ligue 2 by French football’s financial watchdog, the DNCG, due to major financial irregularities. The club, which reported debts of £422 million in October through Textor’s Eagle Football Group, has appealed the decision.

If Lyon lose that appeal, they would forfeit their European qualification—resolving UEFA’s ownership conflict and clearing Palace for entry. Until then, UEFA has chosen to pause its decision, stating more details will be announced “in due course.”

Club sources told BBC Sport they were braced for the delay after being informed late last week that UEFA had no plans to issue a ruling on Monday, as initially anticipated.

The move mirrors UEFA’s decision earlier this month to expel Drogheda United from the Conference League, citing their shared ownership with Danish club Silkeborg through the Trivela Group. It’s a precedent that underscores the seriousness of UEFA’s multi-club regulations.

Should Palace be cleared, they’ll go straight into the Europa League group stage, with the draw set for 29 August and competition beginning in September.

Behind the scenes, some believe UEFA prefers the issue to be resolved by French authorities, avoiding the need to make a controversial ruling themselves. If Lyon’s appeal fails, Palace would be free to compete. If Lyon win, UEFA must then decide if Textor exercised “significant control” over both clubs.

Palace strongly dispute any such claim. Despite Textor’s stake, the club maintains he never exerted operational control—an argument they believe distances them from UEFA’s definition of shared ownership.

There’s growing frustration in south London, especially given Palace’s sound financial management and strong compliance record. In contrast, Lyon’s demotion due to financial mismanagement has only sharpened the sense of injustice.

Sources within the club say UEFA officials have shown sympathy, but the governing body remains cautious. As one official put it, “If this were a clear-cut case, UEFA would have ruled already.”

The delay is impacting preparations both on and off the pitch. European football could attract higher-profile transfers, increased commercial interest, and bolster the club’s financial future. Without confirmation, Palace’s recruitment and sponsorship plans hang in the balance.

“Missing out on Europa is unthinkable,” says Alex Pewter of the FYP Podcast, echoing fan sentiment. “This delay disrupts everything—from player signings to travel plans. Palace have done everything right. The chaos in Lyon only strengthens the case that Palace are not part of the same structure.”

Indeed, Lyon’s relegation has prompted fan protests in France, while elsewhere in Textor’s network—such as Belgium’s RWD Molenbeek—supporters are in revolt over branding changes. The turmoil across the Eagle Football Group has ironically united fanbases across continents in one shared desire: for Textor to sell up.

That process is underway for Palace, but not quickly enough to avoid the current mess.