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Nottingham Forest in Europe: Crystal Palace and Lyon situation, appeal launched, transfer doubts

When Nottingham Forest lost to Chelsea on the final day of last season, it left them having to settle for a seventh-placed finish in the Premier League.

For much of the campaign, Nuno Espirito Santo’s side had looked on course to finish in the top five and clinch a spot in the Champions League. Instead, their late dip in form resulted in Conference League qualification.

Since then, however, a question mark has emerged over which European competition the Reds will actually be in next term. Below, NottinghamshireLive sets out the state of play.

What is the confusion?

Forest’s European fate is tied to that of Premier League rivals Crystal Palace. The latter qualified for the Europa League when they won the FA Cup but their place in Europe has since been thrown into doubt.

Such a scenario would be beneficial for the Reds as they would be bumped up to the second tier of European competition. Should the Eagles get booted out of the Europa League, Nuno’s men would be in line to take their place.

The uncertainty has centred around whether the south London side have fallen foul of multi-club ownership rules. Palace shareholder John Textor is also president of Lyon, who also qualified for the Europa League after finishing sixth in Ligue 1.

Textor’s situation

Textor is in the process of selling his shares in Palace. A sale to Woody Johnson, owner of the NFL’s New York Jets, has been agreed but the Premier League are yet to ratify the deal and Johnson must yet pass the Premier League’s owners’ and directors’ test.

On Monday, Palace announced Textor’s 45 percent stake in the club had been sold to Johnson, subject to Premier League and Women’s Super League approval. A club statement read: “Crystal Palace Football Club can confirm that Robert Wood Johnson, ‘Woody’, an American businessman and co-owner of the New York Jets, has signed a legally binding contract to purchase Eagle Football’s holding in the club.

“Whilst the completion is pending approval from the Premier League and Women’s Super League, we do not envisage any issues and look forward to welcoming Woody as a partner and director of the club. We would like to go on record to thank John Textor for his contribution over the past four years and wish him every success for the future.”

Reports have placed the price between £160 million and £190m. If the sale goes through, it has been suggested it may free Palace up to keep their Europa League spot.

Lyon twist

After Monday’s Palace announcement came another twist, however. On Tuesday, it was confirmed Lyon had been relegated to Ligue 2.

Lyon were hit with a provisional relegation in November after racking up massive debts. Although they have since sold a number of first-team players, French football watchdog the DNCG upheld the relegation following meetings on Tuesday.

The decision was announced by the French Football League (LFP) on Tuesday evening. Lyon quickly announced they would appeal against what the club called an “incomprehensible decision”.

A club statement said: “Olympique Lyonnais acknowledges the incomprehensible decision handed down by the DNCG this evening and confirms that it will immediately appeal. Over the past few months, we have worked closely with the DNCG, meeting all of its demands with equity investments in excess of the amounts requested.

“Thanks to equity contributions from our shareholders and the sale of Crystal Palace, our cash position has improved significantly, and we have more than sufficient resources for the 2025-26 season. With proven funds and sporting success that has earned us a place in European competition two years in a row, we sincerely do not understand how an administrative decision could have relegated such a major French club. We will appeal to demonstrate our ability to provide the necessary financial resources to ensure OL’s continued presence in Ligue 1.”

What does it mean for Forest?

If Lyon are unsuccessful with their appeal and their relegation is upheld, it is almost certain they won’t be in the Europa League next season. That would likely mean Palace keeping their spot and the Reds remaining in the Conference League.

According to the PA news agency, a decision regarding Palace’s participation in Europe is expected from UEFA before the end of June. Forest are understood to have written to the European governing body after expressing concerns over Palace’s Europa League spot.

At one stage last season, it looked as though the Reds and fellow Evangelos Marinakis-owned side Olympiacos might both qualify for the Champions League. To avoid breaching the multi-club ownership rules, Marinakis placed his Forest shares in a blind trust so as not to fall foul of the regulations.

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Transfer uncertainty

The Reds have conducted a fair bit of transfer business with Lyon in recent windows. Moussa Niakhate and Orel Mangala left the City Ground for the French outfit 12 months ago, and goalkeeper Matt Turner and midfielder Danilo could do the same this summer.

However, the announcement about Lyon’s relegation has left a question mark over whether deals for Turner and Danilo will actually go through. Turner’s switch is said to have been “verbally agreed” between the two sides while a £21 million bid was reportedly made for Danilo.

Journalist Tom Bogert, who specialises in the MLS and United States men’s team, said of USA international Turner on X: “Several people have asked me about Matt Turner's future with Lyon being provisionally relegated to Ligue 2 over financial issues: For now... nothing has changed for Turner.

“Lyon will appeal and are hopeful to get it overturned. If so, deal still on. If not? We'll revisit.”

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