Nottingham Forest have written to UEFA to express concerns over Crystal Palace’s eligibility to compete in the Europa League next season (h/t the Times).
The club cited potential breaches of multi-club ownership rules involving American businessman John Textor.
Textor owns 43 percent of Palace through League Football Holdings. He also controls Lyon who have also qualified for the Europa League.
UEFA regulations prohibit clubs under shared ownership or control from participating in the same European competition.
Palace met with UEFA’s Club Financial Control Body (CFCB) in Nyon last week to clarify their position and avoid sanctions.
Forest will move into the Europa League from the Europa Conference League if Palace drop out.
They have contacted UEFA over the matter, and the governing body will issue a ruling by the end of June.
Lyon’s participation may prove pivotal. Initially disqualified from European competitions in December due to financial breaches, Lyon were later reinstated after meeting certain conditions.
However, the CFCB is monitoring the club, and any further breaches could lead to another exclusion.
The situation could escalate to the Court of Arbitration for Sport (CAS). If UEFA kick Palace out, they will likely appeal.
Forest could also take the case to Swiss courts if Palace remain in the Europa League.
Brighton & Hove Albion may also become involved should a reshuffling of places extend to the Europa Conference League.
Palace shocked the world by beating Manchester City to win the FA Cup, but face a serious case that could see them miss out on the European slot they fought to earn.
Palace believe they comply with UEFA rules. They claim Textor holds just 25% of voting rights and exerts no operational control.
Forest owner Evangelos Marinakis diluted his stake in Olympiacos to comply with UEFA’s March 1 deadline for restructuring.
Interestingly, Manchester City and Manchester United were previously in a similar situation to Palace.
They used blind trusts to comply with UEFA multi-club rules after partner teams, Girona and Nice, also joined them in the same European competition.
Textor was caught out by Palace defying the odds and did not have enough time to enact the changes, but it would be a shame if they missed out on Europe.
The 59-year-old is reportedly trying to offload his stake in Palace but will struggle to complete the process before the Europa League draw.
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