Crystal Palace were on top of the world on Sunday afternoon, but things have crashed back to earth.
The Eagles have lost their appeal to the Court of Arbitration for Sport. They will still play in Europe, but their outcry has fallen on deaf ears, as the team have been demoted to the Conference League.
Palace had beaten **Man City**1-0 in the **FA Cup**final in May. This glorious moment not only marked the first major honour in their history, but it also should have booked a spot in the Europa League.
However, the day after Palace defeated **Liverpool**3-2 in a penalty shootout to earn the Community Shield for the first time, CAS confirmed the punishment they received from **UEFA**would be upheld.
How have Palace ended up in this position?
Pain for Palace has paved the way to joy for fellow Premier League side Nottingham Forest.
The Tricky Trees were in the race for the Champions League, but their faltering form at the end of the 2024/25 season saw them drop to seventh spot. Once Palace picked up some historic silverware, they would have gone into the mix for the Conference League, were it not for crafty bookkeeping.
**UEFA**has outlined rules against the practice of multi-club ownership. In their eyes, "no individual or legal entity" can have the majority of shareholder voting rights over two clubs that are competing in Europe at the same time. For both Palace and Forest, this law would create some complications.
**UEFA**revised the deadline to bring books into line with the laws from 1 June to 1 March so that the organisation would have enough time to judge all potential cases that the rule could affect. That meant that teams had to act ahead of time on the assumption that they might qualify for Europe next season.
Evangelos Marinakis, who has a stake in the Greek side Olympiakos, had chosen to dilute his control of Forest so he would comply with the demands of UEFA. His counterpart, John Textor, is the owner of Eagle Football, who has a 43% stake in Crystal Palace and 77% of **Ligue 1**outfit Lyon.
At the time, **Lyon**looked like they might be going down to **Ligue 2**due to financial mismanagement, and Palace had not reached the final four of the FA Cup. Textor has since sold his stake in **Lyon**to Woody Johnson, who owns the New York Jets. But by the time he stepped away from the French club, who seem to be staying in the top tier, it was too late to offer proof of multi-club restructuring.
In June, Forest asked **UEFA**to offer clarity about whether Palace have earned the right to play in the Europa League. The organisation took its time to answer, but responded with the proposed demotion.
The board refused to accept they had breached the rules, and on 22 July, 11 days after the ruling from UEFA, they appealed the ruling to CAS. The hearing began on 8 August, and three days later, the bad news had filtered its way to South London: **Selhurst Park**must put up with the Conference League.
Where do the club go next?
Palace have stood their ground. As an independent entity, they do not believe that CAS should uphold this ruling from UEFA. A strongly worded statement has asked for more "coherent rules" about what constitutes multi-club ownership so that the dreams of other outfits are not shattered in such fashion.
In the immediate term, this month might also mark the end of the road for the club with their captain.
Marc Guehi arrived in SouthLondonin 2021 from his boyhood club **Chelsea**after he spent two seasons on loan at Swansea City. He has been a stable figure at the back for the Eagles, and before the beginning of the 2024/25 campaign, he got the duty of wearing the armband from Joel Ward.
The club refused to accept interest in his services from Newcastle United, turning down a final offer of £65 million from the Toon in January. However, he has entered the last twelve months of his deal.
He is not short of suitors. **Liverpool**let go of Jarell Quansah in this transfer window and might want an extra defender to back up **Virgil van Dijk**and Ibrahima Konate. Meanwhile, his old outfit, the Blues, have lost Levi Colwill to an ACL injury, and a replacement would be a welcome addition.
Chairman Steve Parish has signalled that the club are not in a position to allow him to leave for free.
Eberechi Eze will not see his contract with the club expire until the summer of 2027. However, top teams are circling for his services with particular interest from **Arsenal**and **Tottenham**in the ring.
The Eagles had to adapt to life with Joachim Andersen and Michael Olise to fly to new heights in 2025. They have earned two titles and won three trips to Wembley Stadium in three months and are already doing something special. European football will be an experience to enjoy for all involved, but the fear is that this week might mean the end of a journey that is going through the gears.