Crystal Palace in Europa League: UEFA postpones decision on Eagles' involvement after Lyon's relegation to Ligue 2

UEFA has postponed a decision on whether to admit Crystal Palace into next season's Europa League.

Palace thought they had secured a place in Europe's second-tier club competition thanks to their FA Cup final win over Manchester City in May but uncertainty arose as to whether they would be allowed to enter due to UEFA's multi-club ownership rules.

Outgoing major shareholder John Textor, who has agreed to sell his stake in Palace to New York Jets owner Woody Johnson, has an interest in French club Lyon, who qualified for the same competition.

Textor resigned from his leadership roles at Lyon on Monday.

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But UEFA announced on Monday it needed more time to make a decision on Palace's Europa League involvement and said Lyon had reached a settlement that would exclude them from European competition in the 2025/26 season if they were relegated to Ligue 2 over financial difficulties.

The seven-time French champions were relegated last week but they have appealed against that verdict which will be considered at a meeting on Friday.

A UEFA statement said: "The CFCB (club financial control body) 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."

Have Palace's Europa League prospects improved after Lyon relegation and Textor sale?

Lyon were relegated due to financial difficulties by French football's financial regulator, the DNCG.

Last week it was announced Textor had agreed to sell his shareholding in Palace to Johnson. It was announced on Monday he had resigned from his leadership positions at Lyon as well.

Whether any of that assists Palace's chances remains to be seen.

Palace's case has been examined under article five of UEFA's club competition regulations, which state that as of March 1 this year, clubs wishing to be eligible for qualification in 2025/26 had to be able to demonstrate that no individual or legal entity had control or influence over more than one club participating in the same competition.

Where two or more clubs fail to meet the criteria, only one can be entered, with Lyon's better league position appearing to put them ahead of Palace.

Lyon said in a statement the settlement agreement they had signed with UEFA's club financial and control body (CFCB) meant the club "could therefore participate in next season's Europa League, subject to a favourable outcome of the appeal of the DNCG decision".

That would indicate Lyon's participation hinges on the success of their appeal, but what is unclear is whether UEFA might admit Palace as well if it is satisfied requirements have been met under multi-club ownership rules - or only admit Palace if Lyon's relegation is upheld.

Palace remain in limbo with latest UEFA update

Sky Sports News chief correspondent Kaveh Solhekol:

Crystal Palace remain in limbo with the latest update from UEFA.

Pre-season training starts next week and no one knows whether or not they will be playing in the Europa League next season.

Players such as Eberechi Eze, Marc Guehi and Jean-Philippe Mateta are in demand and this latest UEFA delay will only add to the uncertainty surrounding their futures at the club.

Palace cannot plan and prepare properly when they do not know which competitions they will be playing in next season.

Palace executive chairman Steve Parish is known to be opposed to multi-club ownership in football so he must be more frustrated than anyone about what has happened since Palace won the FA Cup last month.

Palace have good relations with UEFA and it would appear that UEFA has accepted that Textor does not have decisive influence over the way Palace are run. It has been reported that Textor was instrumental in bringing Oliver Glasner to Selhurst Park but that appointment was down to Parish and former sporting director Dougie Freedman.

The uncertainty goes on for Palace

Sky Sports News chief correspondent Kaveh Solhekol:

Crystal Palace's summer of uncertainty continues.

The problem would go away if Lyon's relegation from Ligue 1 for breaking French football's financial rules is confirmed. Lyon have appealed against their relegation by French football's financial watchdog DNCG and they have signed an agreement with UEFA which means they will not play in the Europa League if they lose their appeal and their relegation is confirmed.

UEFA has decided to wait for the result of Lyon's appeal before announcing whether Palace can play in the Europa League. They are effectively kicking the can down the road. If Lyon's relegation is confirmed, Palace can play in the Europa League, if Lyon win their appeal, then UEFA are likely to allow both clubs to play in the Europa League because of changes made to their ownership structures.

But that would open the door to a potential legal challenge from Nottingham Forest who could go all the way to the Court of Arbitration for Sport in an attempt to replace Palace in the Europa League. Forest could argue that Palace missed the March 1 deadline to comply with UEFA's multi-club ownership rules so Forest should get their place in the Europa League and Palace should drop down to replace them in the Conference League.

(c) Sky Sports 2025: Crystal Palace in Europa League: UEFA postpones decision on Eagles' involvement after Lyon's relegation to Ligue 2