UEFA issue statement on Crystal Palace being banned from Europe next season

UEFA have spoken out to address reports that Crystal Palace may be banned from competing in the Europa League next season.

Following a historic FA Cup final win over Manchester City in May, Crystal Palace secured a spot in the 2025/26 Europa League for the first time in the club's history.

However, it was later revealed that the London club could be banned from playing in the competition due to multi-club ownership regulations, with former majority shareholder John Textor also holding a controlling stake in French club Lyon.

Things took a serious turn last week as, despite finishing sixth in the French top division this season, seven-time Ligue 1 winners Lyon were relegated to the second tier of French football due to the club's financial situation.

And now, UEFA has spoken out to give a massive update on Palace's potential participation in the Europa League and revealed how Lyon's relegation could have an impact.

Crystal Palace won the FA Cup final last month. (Image: Getty)

In an official statement, the European governing body confirmed that the decision on whether Crystal Palace will play in the Europa League has been temporarily postponed after Lyon agreed to a new deal.

It says that the French side have agreed to be excluded from Europe next season if they are relegated over financial issues - something which is yet to be finalised as Lyon undergo a challenge of the official decision.

The statement states: "Finally, the CFCB First Chamber has decided to postpone its assessment of the multi-club ownership case involving Olympique Lyonnais and Crystal Palace.

"This postponement relates to Olympique Lyonnais' compliance with the settlement agreement concluded with the CFCB First Chamber for its breach of the financial sustainability requirements.

"As part of this settlement, Olympique Lyonnais agreed on an exclusion from the 2025/26 UEFA club competitions should the French authority (DNCG) confirm the club's relegation to Ligue 2.

"Further details on this multi-club ownership case and this settlement agreement will be communicated in due course."

What have Crystal Palace said about the potential UEFA ban?

As soon as it became clear that Palace were at risk of losing their spot in the Europa League next season, the club ownership took drastic action to ensure that this wasn't the case.

In an attempt to avoid concerns about multi-club ownership, American businessman Textor agreed to sell all of his Crystal Palace shares to New York Jets owner Woody Johnson in a deal worth more than £190million.

But it remains to be seen if doing so will assist Palace's chances of staying in the Europa League.

Crystal Palace could lose their spot in next season's Europa League. (Credit:Getty)

How much could it cost Crystal Palace if they are banned?

Should UEFA decide against allowing Palace to compete in the Europa League next season, then Nottingham Forest, who finished one spot below Palace in the Premier League last season, would take their place.

In this scenario, Palace would then take Forest's spot in the third tier of European football, the Europa Conference League, dealing a huge financial blow to the Eagles.

Last season, the total share for Europa League clubs totalled €565million (£483.5m) while the share for the Conference League is substantially lower at €285m (£243.9m).

Of course, how much Palace could actually earn would depend on their performances in each competition.

What happens next?

For now, Palace will have to wait until a decision is made regarding Lyon's appeal and UEFA's subsequent decision about the multi-club ownership case and Lyon's settlement agreement.

But according to The Times journalist Martyn Ziegler, it is looking increasingly likely that, if Lyon are successful in the appeal against their relegation, then Palace will have to instead play in the Europa Conference League next season.

If this were to happen, it is almost certain that the Premier League side would challenge the decision at the Court of Arbitration for Sport (CAS).

On the other hand, if Palace are permitted to play in the Europa League, then Nottingham Forest may argue to CAS that UEFA's laws have not been followed.