Crystal Palace demoted to Conference League amid Lyon conflict - ESPN

Crystal Palace have been demoted from the Europa League to the Conference League after UEFA's Club Financial Control Body (CFCB) ruled the Premier League club was too closely linked to Lyon.

Palace are now expected to take the case to the Court of Arbitration for Sport (CAS), as has been the case with the other clubs excluded this summer.

Nottingham Forest, who were due to enter the Conference League in the playoff round next month, will be promoted to the Europa League subject to the CAS appeal.

The ruling means Palace are not guaranteed to play in the League Phase, as they must play a qualifier, while the financial rewards are far higher from playing in the Europa League.

Palace qualified for the Europa League by beating Manchester City in the FA Cup final, but seven days later Paris Saint-Germain's victory in the Coupe de France final meant Lyon were promoted to play from the Conference League to also play in the Europa League.

This immediately created a concern with UEFA's Multi-Club Ownership Rules (MCO), which forbids any party having a significant interest in more than one club in the same competition.

John Textor, the majority owner and chairman of Eagle Football Holdings, has a 77% stake in Lyon but also owns 43.9% of Palace. UEFA's regulations take issue with any dual holding above 30%, though Palace argued that Textor had no role in the running of the Premier League club.

MCO rules state that if two clubs are in violation of the regulation, the club which finishes higher in the league will play in the European competition. Even though Palace (12th) won the FA Cup, and Lyon (6th) only qualified on a technicality, the league placing alone determines the right to play.

This is contradictory to the competition