Crystal Palace face never-before-seen UEFA action if relegation appeal successful

UEFA could hand Crystal Palace a unique punishment if Lyon are successful in their appeal against relegation. The two clubs have been locked in talks with European football's governing body over a potential breach of multi-club ownership rules.

Palace won the FA Cup in May and their Wembley triumph should've earned them a place in next season's Europa League. But due to outgoing Selhurst Park co-owner John Textor also owning a majority stake in fellow Europa League qualifiers Lyon, the Eagles are at risk of being kicked out.

US businessman Textor last week agreed to sell his 43 per cent stake in Palace to New York Jets owner Woody Johnson. Had the deal been completed by March 1, the deadline to make ownership changes, both Palace and Lyon would be free to compete in the same UEFA competition.

The situation has become even more complex after Lyon were relegated to the second tier in France because of their poor financial state, despite finishing sixth in Ligue 1 last term. French football's financial watchdog, the DNCG, have signed an agreement with UEFA which means that Lyon won't be able to play in the Europa League if they lose their appeal and their relegation is confirmed.

Should the French club win their appeal, however, it'd see them remain in the Europa League and Palace would likely be bumped down to the Conference League, UEFA's third-rate competition. It's unknown if that would have a knock-on effect for Nottingham Forest, who qualified for the Conference League via their domestic finish.

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On Monday, UEFA confirmed that they were delaying a verdict on the Palace-Lyon debacle. "The CFCB First Chamber has decided to postpone its assessment of the multi-club ownership case involving Olympique Lyonnais and Crystal Palace," a statement read.

"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."

Should Crystal Palace be punished by UEFA? Have your say in the comments section.

In another twist, Lyon's relegation to Ligue 2 saw Textor resign from his role as club president. "On a personal level, I am truly looking forward to the reduction of my day-to-day management responsibilities in Europe, so I can focus on markets where we have the full freedom to run our football clubs… to invest, innovate, grow and compete," the American, who tried to buy Everton last year, said.

"I will focus on Botafogo, Daring Brussels and our next club in England.”

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