 "Crystal Palace relegated to Conference League after losing CAS appeal against UEFA")
GENEVA: Crystal Palace lost its appeal at sport’s highest court on Monday against demotion to the third-tier Conference League for breaching UEFA rules on club ownership with American investor John Textor.
The Court of Arbitration for Sport said its judges dismissed the English cup winner’s request to stay in the more lucrative second-tier Europa League in a case that also involved Premier League rival Nottingham Forest and French club Lyon.
Forest and Lyon are confirmed taking entries directly into the Europa League in September and Palace must start in the Conference League qualifying playoff round next week. Palace was drawn last week to play Fredrikstad of Norway or Midtjylland of Denmark on Aug. 21 and Aug. 28.
Palace has become a victim in a complex case — which developed last month when Lyon avoided mandatory relegation in France for financial turmoil — that focused attention on long-standing UEFA rules being tested by more overseas investment in European soccer, especially from the United States.
UEFA demoted Palace because Textor had a 43% ownership stake last season while also owning Lyon. Palace missed a March deadline set by UEFA to solve the potential issue.
CAS said its judges decided Textor “was a board member with decisive influence over both clubs at the time of UEFA’s assessment date.”
The panel of three judges “considered that the UEFA Regulations are clear and do not provide flexibility to clubs that are non-compliant on the assessment date,” the court said in a statement.
The case proceeded despite Textor selling his stake in Palace last month to New York Jets owner Woody Johnson, reportedly for at least $220 million. Johnson joins Palace chairman Steve Parish and fellow Americans Josh Harris and David Blitzer as partners and directors of the south London club.
Unlike Palace, Forest and Lyon remain part of multi-club ownership networks though do not currently conflict with UEFA rules for entry to the next editions of European competitions. Forest owner Evangelos Marinakis also has Greek title holder Olympiakos which plays in the Champions League this season.
Palace qualified on merit for the second-tier Europa League by winning the English FA Cup against Manchester City in May — a first major trophy in the club’s 120-year history.
The threat of UEFA sanctions for breaching multi-club ownership rules — drafted more than 25 years ago to protect the integrity of European competitions — cast a shadow over Palace’s offseason celebrations and preparations for this season.
At Wembley Stadium on Sunday, some Palace fans displayed the slogan “UEFA Mafia” ahead of the game against Liverpool in the season opener between the cup winner and league champion. Palace lifted another trophy by winning a penalty shootout after a 2-2 draw, less than 24 hours before a big loss at court.
UEFA has repeatedly warned about the growing trend for investors to take stakes or full ownership in multiple clubs in different countries, and the potential threats to the integrity of games and the transfer market.
Textor is among a slew of investors from the United States buying into the multi-billion dollar European soccer industry in recent years.
He has been an increasingly controversial figure in global soccer, also owning Brazilian club Botafogo and Belgium’s Molenbeek while being linked with a failed bid to buy Everton.
If Palace advances to the Conference League’s main phase, it will play just six guaranteed games against mostly lower-ranked opponents between September and December.
Forest and Lyon will play eight Europa League games through January with the potential to earn tens of millions of euros (dollars) more in prize money from UEFA.
While Palace will be among the favorites to win the Conference League title that Chelsea won last season, the sporting and financial demotion risks affecting its transfer market activity this month. Star players Marc Guehi and Eberechi Eze, both England national-team regulars, are targets for wealthier rivals.
Palace is the third club to lose at CAS in recent weeks in challenges to the multi-club ownership rules which now routinely create offseason uncertainty in European soccer because of investors’ wide-ranging ambitions. Forest and Lyon also had faced compliance issues.
UEFA previously removed two clubs from the Conference League lineup: Drogheda from Ireland and FC DAC 14 of Slovakia.
Marinakis had formally stepped back from controlling Forest in April when it seemed the two-time European Cup winner might join Olympiakos and qualify for the Champions League with a top-five finish in the Premier League. Forest placed seventh, earned an initial Conference League entry and that let Marinakis retake full control.
Lyon, which placed sixth in France’s Ligue 1, has been in financial turmoil during Textor’s ownership. It was able to enter the Europa League only after being reprieved on appeal last month from mandatory relegation to the second tier by the French soccer regulator.
Textor stepped down as Lyon president and was replaced by American businesswoman Michele Kang.
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