Nottingham Forest have reportedly reached out to UEFA to raise concerns about Crystal Palace`s potential participation in the upcoming Europa League season.
Crystal Palace earned their spot in European competition for the first time in their history by defeating Manchester City in the historic FA Cup final.
However, their place in the Europa League is now uncertain due to potential conflicts arising from John Textor`s ownership interests. Textor is the majority owner of French club Lyon and also holds a significant 43 per cent stake in Crystal Palace.
UEFA regulations on multi-club ownership strictly prohibit two clubs controlled by the same individual or group from competing in the same European tournament. To comply, owners typically need to place their shares in a blind trust; however, the deadline for this action in this case was reportedly March 1.
Crystal Palace officials have already met with UEFA in Switzerland to argue that Textor does not possess controlling influence over the Selhurst Park club.
Both Crystal Palace and Lyon have qualified for next season`s Europa League. According to UEFA rules, if an ownership conflict exists, the club that finished higher in their domestic league takes precedence. In this scenario, Lyon, who finished higher in Ligue 1 than Palace did in the Premier League, would typically be given priority.
According to reports in The Times, Nottingham Forest are now in communication with European football`s governing body to highlight the potential breach of multi-club ownership rules.
Forest`s intervention is significant as they could directly benefit from any action taken against Palace. If Crystal Palace are deemed ineligible for the Europa League, it is understood that Nottingham Forest, who qualified for the Europa Conference League, would be promoted to take Palace`s place in the Europa League.
Furthermore, if Palace were to be demoted to the Conference League instead of being banned entirely from Europe, this situation could trigger a legal challenge from Brighton & Hove Albion. Brighton finished eighth in the Premier League and would be next in line for a European spot if another English club were excluded or moved.
Regardless of UEFA`s initial decision, it is anticipated that either Crystal Palace or Nottingham Forest could take the case to the Court of Arbitration for Sport (CAS) depending on the outcome.
In contrast to the situation with Textor, Nottingham Forest`s owner, Evangelos Marinakis, proactively made the necessary adjustments to his ownership structure when it became apparent that both Forest and his other club, Olympiacos, could potentially qualify for UEFA competitions.
Senior figures at Nottingham Forest are reportedly confident they can reach a favourable agreement with UEFA should the opportunity arise for them to participate in the Europa League next season.
While UEFA`s Club Financial Control Body is expected to make its final decision around June 27, a quicker resolution could be possible if John Textor decides to sell his stake in Crystal Palace.
Reports suggest that the 59-year-old American businessman has been looking to sell his shares in Palace for some time, partly due to a reported breakdown in his relationship with Crystal Palace chairman Steve Parish.