CAS Rejects Crystal Palace Appeal: Europa League Slips Away
The Court of Arbitration for Sport (CAS) has dismissed the appeal filed by Crystal Palace, related to their demotion from the Europa League to the Conference League. The decision is based on regulations regarding multi-club ownership (MCO).
Last month, UEFA’s Club Financial Control Body (CFCB) determined that Palace maintained too close a connection with Olympique Lyonnais. Palace’s appeal was based on three key points: the CFCB’s decision was unfair, they opposed Nottingham Forest’s access to the Europa League, and they questioned Lyon’s participation. The CAS rejected all these claims.
Nottingham Forest benefits from this resolution, moving up from the Conference League to compete in the Europa League. On the other hand, Palace will have to play in the Conference League, starting in the playoffs at the end of this month. They will face the loser of the Europa League match between Fredrikstad and FC Midtjylland.
The Palace had secured their place in the Europa League after defeating Manchester City in the FA Cup final in May. However, Paris Saint-Germain’s victory in the Coupe de France final, a week later, allowed Lyon to move up from the Conference League to the Europa League.John Textor has a 43.9% stake in Crystal Palace, as well as shares in Lyon.UEFA regulations stipulate that, in the event that two clubs fail to comply with FFP regulations, the team finishing in a higher league position will have priority in European competitions. Despite the fact that Palace (12th) won the FA Cup and Lyon (sixth) qualified due to a technicality, the league position was the determining factor.
The key to the situation lies in the shareholding of John Textor, through Eagle Football Holdings Limited, who had a significant influence on Lyon and 43.9% of Palace. The Premier League club argued that Textor had no involvement in the management of Palace, but the regulations on decisive influence prohibit a party from owning more than 30% of the shares in more than one club competing in the same competition.
While Textor sold his stake in Palace to the owner of the New York Jets, Woody Johnson, UEFA regulations are based on the situation of the clubs as of March 1st.
After analyzing the evidence, the panel determined that John Textor, founder of Eagle Football Holdings, held shares in CPFC and OL and was a board member with decisive influence over both clubs on the UEFA assessment date.
TAS Statement
The CAS also dismissed Palace’s argument about alleged unfair treatment compared to Nottingham Forest and Lyon, arguing that UEFA regulations are clear and do not offer flexibility to clubs that fail to meet the requirements on the evaluation date.
The Palace becomes the third club affected by the stricter application of MCO regulations, which require compliance before March 1st, instead of June 30th as in previous seasons.Crystal Palace won the FA Cup in May, after defeating Manchester City in the final.Previously, Ireland’s Drogheda United was excluded from the Conference League due to an ownership conflict with Silkeborg IF of Denmark, and Győri ETO of Hungary was replaced by FC DAC 1904 Dunajská Streda.
The Drogheda, which won the FAI Cup in November, and FC DAC 1904 Dunajská Streda appealed to the CAS, but lost. The Drogheda’s case presented similarities to that of Palace, including complaints about the March 1 deadline and an “alleged unequal treatment by UEFA”.
The Palace and Drogheda could argue that these restrictions are unfair to clubs with little chance of qualifying for Europe.
As the March 1 deadline approached, Palace had yet to play their fifth-round FA Cup match. Club León of Liga MX was excluded from the FIFA Club World Cup due to a ownership dispute with Pachuca, indicating a shift in focus by football’s regulatory bodies towards the MCO.
The CAS decision comes after Palace beat Liverpool in the Community Shield on Sunday.
With the score tied at 2-2 after 90 minutes, Palace won 3-1 in the penalty shootout, securing their second trophy in three months.
Steve Parish, Palace chairman and co-owner, stated after his team’s victory at Wembley that the South London club will seek alternative solutions if the verdict does not favor them.
“If we don’t get the right result, we’ll have to see if there’s any action after that,” Parish said.
