Crystal Palace could face an unprecedented penalty from UEFA, depending on the outcome of Lyon`s appeal against their recent relegation.
The Eagles` qualification for the Europa League, secured by winning the FA Cup, is now under scrutiny due to UEFA`s regulations regarding multi-club ownership.
John Textor, who owns Lyon through his Eagle Football group, is in the process of selling his 43 percent stake in Crystal Palace to Woody Johnson, owner of the New York Jets.
Should the French club successfully overturn their relegation, it is anticipated that Crystal Palace would be relegated to the Conference League instead.
Officials from Crystal Palace have engaged in discussions with UEFA`s Club Financial Control Body (CFCB) to present their case and had expected a resolution this week.
However, UEFA has postponed its decision, stating it will wait for the outcome of Lyon`s appeal.
Palace`s representatives have argued that Textor did not hold effective control over the club and that there were no operational links between the two sides.
Although Textor has sold his share in Palace and resigned his position in France amidst Lyon`s financial difficulties, UEFA has yet to issue a ruling.
It is understood that Textor may not satisfy the CFCB`s requirements, as reports suggest he did not divest his stake by the crucial March 1 deadline.
In a statement released on Monday, UEFA confirmed the delay:
“The CFCB First Chamber has decided to postpone its assessment of the multi-club ownership case involving Olympique Lyonnais and Crystal Palace.”
“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.”
Financial issues under Textor`s leadership led to the seven-time French champions Lyon being relegated to Ligue 2.
The American responded to this development by resigning from his role as president of the French club.
Textor, who previously attempted to buy Everton last year, issued a statement explaining his reasons and confirming his interest in acquiring another English club following his sale of the Palace stake.
“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.
I will focus on Botafogo, Daring Brussels and our next club in England.”
Lyon has appealed against their relegation, but failing to successfully challenge the decision will result in them forfeiting their place in European competition.
