Crystal Palace could face a unique and unprecedented penalty if Lyon`s appeal against their recent relegation is successful.
The English club`s qualification spot in the Europa League, secured by winning the FA Cup, is currently under threat due to UEFA`s regulations concerning multi-club ownership.
The core issue revolves around John Textor, who owns Lyon through his Eagle Football group and is in the process of selling his 43 per cent share in Palace to New York Jets owner Woody Johnson.
Should the French club win its appeal, Crystal Palace is likely to be demoted to the Europa Conference League as a result.
Palace officials have been in discussions with UEFA`s Club Financial Control Body (CFCB) to present their case and had anticipated a resolution this week.
However, UEFA has decided to postpone its decision, awaiting the outcome of Lyon`s appeal.
The Eagles have argued that Textor did not hold effective control over their club and that there were no operational links between Crystal Palace and Lyon.
Although Textor is selling his stake at Selhurst Park and resigned his position as president in France following Lyon`s financial difficulties, UEFA has not yet delivered its final ruling.
However, this might not satisfy UEFA`s CFCB, as it is understood that Textor did not fully divest his stake by the crucial March 1 deadline.
In a statement released on Monday, UEFA confirmed: “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.”
Textor`s issues at Lyon resulted in the seven-time French champions being relegated to Ligue 2. He responded to this outcome by resigning from his role as president.
Textor, who attempted to purchase Everton last year, explained his decision in a statement.
He also reiterated his interest in acquiring another English club after the completion of the Palace sale.
Textor stated: “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.”
He added: “I will focus on Botafogo, Daring Brussels and our next club in England.”
Lyon has appealed against the relegation decision, but they are set to forfeit their place in any European competition should their appeal prove unsuccessful.
