UEFA ban club from playing in European competition as Crystal Palace await official verdict

UEFA has officially banned a football club from participating in European competition next season due to a breach of multi-club ownership rules, with Crystal Palace anxiously awaiting the outcome of their own case involving similar concerns.

Crystal Palace’s eligibility to compete in the 2025/26 Europa League hangs in the balance, as the club is under UEFA scrutiny over a potential violation of multi-club ownership regulations. The issue stems from the involvement of their majority shareholder, American businessman John Textor, who also holds a controlling stake in French Ligue 1 side Olympique Lyonnais. Both Crystal Palace and Lyon have secured qualification for next season’s Europa League, triggering UEFA’s compliance process for ownership rules.

According to a report from The Times, Palace recently participated in a UEFA summit to explain their position and defend their eligibility. The South London club contends that, despite being the majority shareholder, Textor possesses only 25% of the voting rights at Crystal Palace — falling below UEFA’s 30% threshold that defines “decisive influence” over a club. Under UEFA rules, any party that controls 30% or more of the voting power is deemed capable of exerting significant influence, thus triggering concerns over competitive integrity in European tournaments.

In their defense, Crystal Palace has further insisted that there is no operational or strategic link between themselves and Lyon. The club asserts that they do not share facilities, staff, or sensitive information with the French side, nor are they part of a unified ownership structure. They maintain that their governance and decision-making processes are entirely independent.

Despite the club’s efforts to clarify its structure and maintain compliance with UEFA’s statutes, a final verdict has yet to be delivered. Should UEFA ultimately find Palace in violation of its rules, the club could face disqualification from European competition. In that scenario, their Europa League place would be handed to Nottingham Forest, who are reportedly monitoring the situation closely. In fact, Forest have already submitted a formal letter to UEFA earlier this week, outlining their concerns and pushing for strict enforcement of the regulations.

While Palace’s fate remains undecided, UEFA has already taken action in a separate case involving League of Ireland Premier Division side Drogheda United. The Irish club, who had qualified for next season’s UEFA Europa Conference League after winning their domestic cup, has been informed they will not be allowed to compete.

The decision revolves around Drogheda United’s ownership by the U.S.-based Trivela Group, who also have a majority interest in Danish Superliga side Silkeborg IF. Both Drogheda and Silkeborg secured Conference League spots through cup victories, but UEFA’s regulations prohibit two clubs under common ownership from entering the same competition.

Despite finishing just ninth in the Irish league — second from bottom — Drogheda had hopes of representing Ireland in Europe. Meanwhile, Silkeborg ended their Danish Superliga campaign in seventh place. UEFA has ultimately sided with Silkeborg, granting them access to the Conference League, and leaving Drogheda disqualified.

The blow comes at a particularly painful moment for Drogheda, who are enjoying a resurgent domestic season in 2025. The club currently sits second in the Irish Premier Division table and has lost just three of their opening 19 fixtures.

In response to the ruling, Drogheda United issued a strongly worded statement, voicing frustration and disappointment at UEFA’s decision. They argue that despite months of good-faith dialogue and substantial governance reforms to align with UEFA’s expectations, their efforts were dismissed.

“This verdict comes despite significant efforts by the club to work constructively with UEFA to make necessary ownership and governance changes to allow both clubs to participate,” the club wrote. “We are devastated by this potential development and believe it would be both harsh and unfair, especially considering the inconsistent communication and enforcement of brand-new rule changes introduced this year.”

Drogheda have confirmed they will appeal the ruling to the Court of Arbitration for Sport (CAS), citing similar multi-club ownership cases involving Manchester City, Manchester United, and Chelsea that were previously cleared by UEFA within the last 12 months.

The club added: “Even at this late hour, we are fighting to do anything and everything we can to secure our players’, supporters’, and community’s rightful place in Europe. We have proposed various mechanisms, including share disposition, trust arrangements, and other undertakings in line with recent CFCB (UEFA Club Financial Control Body) precedent. Unfortunately, those solutions were rejected.”

The outcome of both the Crystal Palace and Drogheda United cases could set important precedents for how UEFA enforces its ownership rules amid an increasing number of investors holding stakes in multiple clubs across Europe.