Crystal Palace have failed in their appeal against being demoted from the Europa League and will instead compete in the UEFA Conference League for the 2025/26 season.

The Court of Arbitration for Sport (CAS) upheld UEFA’s decision, confirming that Nottingham Forest will take Palace’s place in the Europa League. Forest were promoted to the competition following Palace’s punishment.

The ruling comes just a day after Palace celebrated winning the Community Shield at Wembley, defeating Liverpool on penalties.

Palace had secured Europa League qualification by winning the FA Cup last season. However, UEFA ruled that the club breached multi-club ownership regulations due to the involvement of American businessman John Textor, who owned a 43% stake in the Eagles until June and remains the majority owner of Lyon, another club qualified for the Europa League.

UEFA had given Palace until 1 March 2025 to restructure ownership arrangements, but the club missed the deadline. Palace appealed to CAS in July, challenging UEFA’s decision and involving both Lyon and Nottingham Forest in the case.

In its verdict, CAS stated:

• UEFA regulations are clear and leave no flexibility for clubs found non-compliant on the assessment date.
• Textor maintained decisive influence over both Palace and Lyon at the relevant time.
• Comparisons to Nottingham Forest and Lyon’s treatment were dismissed.

Under UEFA rules, clubs under the control or significant influence of the same owner cannot compete in the same European competition. Palace argued that Textor did not have decisive influence, but UEFA rejected this defence.

The Eagles will now face either Fredrikstad of Norway or Midtjylland of Denmark in the Conference League play-off round later this month, as they adjust their European ambitions for the new season.