Crystal Palace have been relegated from the Europa League to the UEFA Conference League following a ruling by UEFA over a breach of multi-club ownership regulations.
The European football governing body confirmed the decision on Friday.
The issue stems from American businessman John Textor, who holds a stake in Crystal Palace and is also the majority shareholder of French outfit Olympique Lyonnais.
Both clubs secured Europa League spots, but UEFA rules prohibit two clubs under the same ownership from competing in the same European competition.
Lyon, who finished sixth in Ligue 1 last season, retained their place in the Europa League, as their domestic standing was higher than Palace’s 12th-place finish in the Premier League.
Palace had earned their historic first European qualification by lifting the FA Cup in May — the club’s maiden major title.
In an effort to resolve the conflict, Textor has reached an agreement to sell his 43 percent stake in Palace to Woody Johnson, owner of the NFL’s New York Jets.
However, the transaction was finalized after UEFA’s March 1 deadline for resolving such ownership conflicts and remains incomplete.
A final verdict had been delayed due to Lyon’s separate legal battle, which initially saw the club demoted from Ligue 1 due to financial concerns.
That decision was overturned earlier this week after Textor stepped away from daily operations at the French side.
Crystal Palace are now expected to take their case to the Court of Arbitration for Sport in hopes of overturning the decision.
Meanwhile, Nottingham Forest, who finished seventh in the Premier League last season, will now take Palace’s place in the Europa League, a UEFA source revealed to AFP.
