Crystal Palace has officially appealed to the Court of Arbitration for Sport (CAS) following UEFA's decision to demote them from the Europa League to the Europa Conference League. The dispute stems from UEFA's multi-club ownership rules, which the governing body believes Crystal Palace has breached.

The issue revolves around John Textor, who holds a controlling stake in the French club Olympique Lyonnais and also possesses a significant stake in Crystal Palace. UEFA's regulations prevent two clubs with the same owner from competing in the same European competition. Lyon, by virtue of their league position, retained their spot in the Europa League, leading to Crystal Palace's demotion.

Crystal Palace secured a place in the Europa League for the 2025/26 season after winning the FA Cup. However, UEFA's Club Financial Control Body (CFCB) ruled that Palace did not comply with multi-club ownership regulations before the March deadline. This led to their demotion to the third-tier European competition, the Europa Conference League.

The club strongly contests UEFA's decision, with chairman Steve Parish calling it "one of the greatest injustices" in European football history. Parish insists that Textor does not have decisive influence over Crystal Palace and that the club provided sufficient evidence to prove this. He also criticized the rule itself, deeming it a "crazy rule".

Adding another layer to the situation, Lyon faced potential relegation to Ligue 2 due to financial difficulties. However, they successfully appealed against the relegation and were reinstated to Ligue 1, further solidifying their claim to the Europa League spot.

Crystal Palace's appeal to CAS seeks to overturn UEFA's decision and reinstate them in the Europa League, potentially at the expense of either Lyon or Nottingham Forest. Nottingham Forest finished seventh in the Premier League and are in line to take Crystal Palace's place in the Europa League if the original ruling stands. However, UEFA's Club Financial Control Body is waiting for the outcome of the CAS appeal before confirming Nottingham Forest's participation.

In an attempt to resolve the ownership issue, a legally binding agreement was signed by New York Jets co-owner Robert "Woody" Johnson to purchase Eagle Football Holding's stake in Crystal Palace. This agreement is pending approval from the Premier League.

The Court of Arbitration for Sport has stated that it will expedite the procedure and deliver a verdict on or before August 11, 2025. This quick resolution is crucial as the start of the season approaches. The CAS confirmed that Crystal Palace is seeking annulment of UEFA's decision. The coming weeks will be critical as Crystal Palace fights to reclaim its place in the Europa League.