The Court of Arbitration for Sport Ruling
The Court of Arbitration for Sport (CAS) has dismissed Crystal Palace’s challenge to their recent downgrade from the Europa League to the Conference League. This decision stems from breaches of multi-club ownership regulations enforced by UEFA. Last month, UEFA’s Club Financial Control Body (CFCB) determined that Crystal Palace was in violation due to its significant ties with Lyon.
Details of the Appeal
Crystal Palace’s appeal sought to contest the fairness of the CFCB’s ruling, argue against the promotion of Nottingham Forest to the Europa League, and question the legitimacy of Lyon’s participation. However, all three bases for their appeal were ultimately turned down by CAS.
Consequences of the Ruling
As a result of this ruling, Nottingham Forest has been promoted to the Europa League, having moved up from the Conference League. Meanwhile, Crystal Palace will now have to compete in the playoff round of the Conference League, set to face off against the losers of an upcoming Europa League clash between Fredrikstad and FC Midtjylland.
Background of the Situation
Crystal Palace originally secured their place in the Europa League by defeating Manchester City in the FA Cup final this May. However, a week later, Lyon’s advancement to the Europa League was confirmed following Paris Saint-Germain’s triumph in the Coupe de France, which resulted in conforming to UEFA’s criteria regarding club ownership.
According to UEFA regulations, in cases where two clubs are in breach of ownership rules, the team finishing higher in the league standings gets precedence for European competition. Despite Crystal Palace’s FA Cup win and their 12th place finish, Lyon’s sixth-place ranking was decisive, illustrating how league positions can outweigh cup victories in such scenarios.
Ownership Controversy
The root of the controversy lies in the ownership of John Textor through Eagle Football Holdings Limited, who holds a majority stake in Lyon and nearly 44% of Palace. Though Crystal Palace argued that Textor did not exert influence over their operations, UEFA regulations outright prohibit one individual from holding more than a 30% stake in multiple clubs in a single competition.
Textor recently divested his stake in Palace to Woody Johnson, owner of the New York Jets. Despite the transfer, UEFA’s adherence to regulations from March 1 means that the ruling is unaffected by the recent ownership change.
Implications for Multi-Club Ownership
This situation marks a notable instance as Palace becomes the third club to face sanctions under the stringent adherence to MCO rules, which require compliance by an earlier date than in previous seasons. Previously, clubs like Drogheda United and Győri ETO in Hungary faced similar penalties due to ownership conflicts, signaling a stricter stance by football’s governing bodies on such matters.
Drogheda, which won the FAI Cup, found itself ousted from the Conference League due to connections with Danish club Silkeborg IF. Their appeals, alongside FC DAC 1904 Dunajská Streda, were also disregarded by CAS. Critics of the MCO restrictions argue that these rules disproportionately hurt clubs with fewer chances to qualify for European competitions.
In earlier developments, Club León, a Liga MX team, was disqualified from the FIFA Club World Cup over similar ownership conflicts, further highlighting the growing scrutiny on multi-club ownership practices within elite football.
