Crystal Palace have been removed from the UEFA Europa League and placed in the Conference League after falling foul of UEFA’s multi-club ownership regulations, the European football body announced on Friday.
The issue revolves around American investor John Textor, who owns a significant share in Palace and is also the majority shareholder at French side Lyon.
Both clubs secured Europa League qualification, but UEFA rules prohibit two clubs under the same ownership structure from competing in the same tournament.
Lyon have been allowed to retain their Europa League spot after finishing sixth in Ligue 1—higher than Palace’s 12th-place standing in the Premier League.
Palace had booked a European ticket for the first time in club history by winning the FA Cup in May, their first major title.
Although Textor has reached an agreement to sell his 43 percent stake in the South London club to Woody Johnson, owner of the NFL’s New York Jets, the transaction has not yet been finalized.
The timing of the deal also worked against Palace, as it came after UEFA’s March 1 deadline for resolving such conflicts.
UEFA’s ruling was delayed by Lyon’s separate legal challenge after they were initially relegated to Ligue 2 over financial concerns.
That decision was overturned this week following Textor’s decision to relinquish direct control of the club.
Crystal Palace are expected to challenge UEFA’s decision at the Court of Arbitration for Sport. In the meantime, Nottingham Forest—who finished seventh in the Premier League—will be promoted to the Europa League, according to a UEFA source in the UK.