In a development underscoring the increasing complexity of modern football ownership and its intersection with sporting regulations, UEFA`s Club Financial Control Body has issued a definitive ruling regarding the European participation of French club Lyon and English side Crystal Palace for the upcoming season.
The core of the matter revolves around UEFA`s Article 5.01 of the Club Competition Regulations, which addresses the criteria for multi-club ownership. This rule is fundamentally designed to prevent scenarios where clubs under the same ownership structure compete in or unduly influence the same European competition, thereby safeguarding the integrity and competitive balance of UEFA tournaments.
Both Lyon and Crystal Palace were subject to review due to their connection through American businessman John Textor, who holds a majority stake in Olympique Lyonnais and a significant 45% shareholding in Crystal Palace. Such intertwined ownership, unless structured to meet strict independence criteria set by UEFA, can fall foul of the regulations.
Following their assessment, UEFA determined that, as per the regulations, both clubs were in breach of the multi-club ownership criteria. This finding presented a unique challenge, as both clubs had achieved qualification for UEFA competitions through their domestic league finishes (Lyon finishing sixth in Ligue 1, benefiting from PSG`s Coupe de France win for a Europa League spot, and Crystal Palace securing a place via their Premier League position).
However, UEFA`s framework anticipates such conflicts. When two clubs linked by ownership both qualify but are found to be non-compliant with Article 5.01, the regulations stipulate that only one may enter the same competition. Furthermore, if they qualify for different competitions (e.g., Europa League vs. Conference League), the higher-ranked club in its domestic league is granted entry to the higher-tier competition for which it qualified, while the other club is moved to the lower-tier competition.
Applying this principle, UEFA has confirmed that Olympique Lyonnais will proceed to compete in the UEFA Europa League. Conversely, Crystal Palace will participate in the UEFA Conference League. This decision effectively sees Crystal Palace demoted from the Europa League spot they might otherwise have expected, purely based on the regulatory compliance point rather than their on-field performance relative to Lyon.
The ruling highlights the growing influence of off-field financial and ownership structures on sporting outcomes and serves as a clear reminder to clubs and potential investors that navigating the landscape of multi-club models within the confines of international football governance requires meticulous attention to regulatory detail. For Crystal Palace, it`s a technical setback impacting their European journey, redirecting them to a competition offering less prestige and potentially lower financial rewards compared to the Europa League.
