Palace lose appeal against demotion to Conference League

GENEVA (AP):

CRYSTAL PALACE lost their appeal at sport’s highest court yesterday 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 (CAS) said its judges dismissed the English Cup winners’ request to stay in the more lucrative second-tier Europa League, in a case that also involved Premier League rivals Nottingham Forest and French club Lyon.

UEFA confirmed that Forest and Lyon will enter the Europa League directly in September, while Palace must start in the Conference League qualifying play-off round next week. Palace were drawn last week to play Fredrikstad of Norway or Midtjylland of Denmark on August 21 and 28.

Palace have 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 football, especially from the United States.

UEFA demoted Palace because Textor had a 43 per cent 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 holders Olympiakos, who play 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 — the 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 off-season 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 winners and league champions. Palace lifted another trophy by winning a penalty shoot-out 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 multibillion-dollar European football industry in recent years.

He has been an increasingly controversial figure in global football, also owning Brazilian club Botafogo and Belgium’s Molenbeek, while being linked with a failed bid to buy Everton.

If Palace advance to the Conference League’s main phase, they will play just six guaranteed games against mostly lower-ranked opponents from September to December.

Forest and Lyon will play eight Europa League games through to January with the potential to earn tens of millions of euros more in prize money from UEFA.

While Palace will be among the favourites to win the Conference League title that Chelsea won last season, the sporting and financial demotion risks affecting their transfer market activity this month. Star players Marc Guehi and Eberechi Eze, both England national team regulars, are targets for wealthier rivals.

Palace are the third club to lose at CAS in recent weeks in challenges to the multi-club ownership rules, which now routinely create off-season uncertainty in European football because of investors’ wide-ranging ambitions. Forest and Lyon had also faced compliance issues.

UEFA previously removed two clubs from the Conference League line-up: 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 winners 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, who placed sixth in France’s Ligue 1, have been in financial turmoil during Textor’s ownership. They were able to enter the Europa League only after being reprieved on appeal last month from mandatory relegation to the second tier by the French football regulator.

Textor stepped down as Lyon president and was replaced by American businesswoman Michele Kang.