Nottingham Forest have reportedly contacted UEFA expressing concerns regarding Crystal Palace`s potential participation in the Europa League.
Crystal Palace qualified for the Europa League, marking their first time in European competition, following their historic FA Cup final victory against Manchester City (based on the provided text).
However, Crystal Palace`s eligibility is now in question due to complications surrounding John Textor`s ownership stakes in both Palace and the French club Lyon. Textor holds a majority stake in Lyon and is the largest shareholder in Palace, with 43 percent. UEFA regulations on multi-club ownership prohibit two clubs controlled by the same individual or group from participating in the same competition.
To avoid this situation, Textor could have transferred his shares in Crystal Palace into a blind trust by the March 1 deadline, a method used by other owners.
Crystal Palace officials have already met with UEFA in Switzerland to argue that Textor does not exert controlling influence over their club.
Both Crystal Palace and Lyon have qualified for next season`s Europa League. UEFA rules dictate that if two clubs with linked ownership qualify for the same competition, the club that finished higher in its domestic league (in this case, Lyon) takes precedence.
Nottingham Forest have now contacted UEFA to bring attention to this potential rules violation.
The final decision may depend on the status of Lyon. Lyon were initially disqualified from European competitions by UEFA`s Club Financial Control Body in December due to financial issues, following a provisional relegation from Ligue 1. However, they were later permitted to continue in the Europa League (where they were eliminated by Manchester United in the quarter-finals) after meeting specific requirements.
It is understood that if Crystal Palace are barred from the Europa League, Nottingham Forest, who finished in a Conference League spot, would be promoted to take their place.
Should Crystal Palace instead be moved to the Conference League competition (as opposed to being banned entirely), this scenario is likely to result in a legal challenge from rival club Brighton, who finished eighth in the Premier League and would typically be next in line for a European spot.
Regardless of UEFA`s ruling, it is possible that either Crystal Palace or Nottingham Forest could appeal the decision to the Court of Arbitration for Sport (CAS).
Nottingham Forest proactively adjusted their ownership structure when it became clear that both they and their owner Evangelos Marinakis` other club, Olympiacos, might qualify for the Champions League, in order to comply with UEFA regulations.
Senior officials at Nottingham Forest are reportedly confident they can reach an agreement with UEFA that will allow them to participate in the Europa League next season.
UEFA`s Club Financial Control Body is not expected to announce its final decision until June 27th, but a resolution could potentially occur sooner if John Textor decides to sell his stake in Crystal Palace.
The 59-year-old American businessman has reportedly been seeking to sell his stake in Crystal Palace for a while, following a deterioration in his relationship with the club`s chairman, Steve Parish.
