Crystal Palace remain confident they are not in breach of Uefa rules that could block them from playing in the Europa League next season.
Palace confirmed a place in next season’s competition after a stunning FA Cup final win against Manchester City.
However, Uefa rules prevent two clubs that share owners, operating systems, staff or have any kind of influence on one another, from competing in the same competition.
Bloomberg first reported that the regulations could cause Palace issues due to developments in France. If Paris Saint-Germain win the French Cup this weekend, Lyon would qualify for the Europa League. And a potential conflict arises via John Textor.
John Textor’s Eagle Football Holdings own 45 per cent of Crystal Palace (Photo: Getty)The American businessman’s Eagle Football Holdings owns 45 per cent of Crystal Palace and more than 77 per cent of Lyon.
Palace sources have, however, insisted to The i Paper that the club do not believe they are in breach of Uefa rules and will pass an assessment.
Uefa rules state that one club cannot be “involved in any capacity whatsoever in the management, administration and/or sporting performance of any other club” or “have any power whatsoever in the management, administration and/or sporting performance of any other club participating in a Uefa club competition”.
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But Palace have no influence or relationship with Lyon, nor do they share resources, shares, assets or facilities.
Article 5 of the Uefa Europa League regulations also makes clear that “no individual or legal entity may have control or influence” over two clubs in Uefa competitions.
Sources say, however, that while Textor owns 45 per cent of Crystal Palace, his influence is diluted due to the complex ownership structure at the club. The three principal shareholders – Steve Parish, the chairman, and American investors David Blitzer and Josh Harris – and Textor share voting rights, splitting decisions four ways and, effectively, giving each a 25 percent controlling stake.
Operationally, the club is run by Parish, who owns 10 percent of the shares and has gained widespread respect for the way he has led the club over several years.
Indeed, Textor has frequently complained about his lack of control at Palace, and his regret at not buying more of a stake in the club when he first became involved in 2021. He has even threatened to walk away over it.
Crystal Palace’s co-owner Steve Parish runs the club operationally (Photo: Getty)In a Q&A with The Athletic in 2023, Textor said: “People can call me an investor all they want but I’ve never been an investor in somebody else’s business. I’ve built businesses from start-ups, successfully and unsuccessfully. That’s what I do.
“But the likelihood of me being a passive investor for a length of time? If you knew me, you’d know that’s not a long-term strategy. So either we’re invited to take greater leadership over time or we’ll want to deploy our capital elsewhere.”
Textor said that, unlike at his other clubs – he also owns Botafogo, in Brazil, and Belgian side RWD Molenbeek – he will check Palace results but is “not remotely responsible for the outcome”.
The ‘complexity’ for Crystal Palace
Uefa declined to comment, but the governing body will only deal with any issues after the Champions League final and when they know who has qualified for their competitions. If Lyon qualify for the Europa League, Uefa’s Club Financial Control Body would assess the relationship between both clubs.
Should Palace not, as the club expect, be sufficiently compliant, the situation would be complicated further by Textor’s plans to take Eagle Holdings Ltd public on the New York Stock Exchange.
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“In most recent cases — like Manchester City and Girona or Manchester United and Nice — clubs have temporarily resolved the multi-ownership conflict by transferring one club into a so-called ‘blind trust’,” football finance expert Stefan Borson told The i Paper.
“This is a legal workaround where the owner relinquishes formal control for the duration of a Uefa season, often through an independent trustee arrangement.
“The potential complexity here is that Eagle Football Holdings have themselves said that they are simultaneously looking to either sell or increase the Palace stake and also IPO in the US imminently. Corporate activity flies in the face of the blind trust mechanism.
“None of the other MCOs have had to deal with that scenario. Unless Eagle Football are prepared to pause their corporate plans, the potential for conflict remains a significant issue to deal with in the next few weeks.”
Uefa is yet to deny Premier League clubs entry into their competitions, despite previous conflicts.
Last summer, Uefa opened proceedings into City Football Group owning Manchester City and Girona, and INEOS owning Manchester United and Nice, after a conflicts arose.
Clearing all four to play, Uefa posted a statement on its website stating: “The concerned investors have transferred their shares in Girona FC and OGC Nice to independent trustees through a blind trust structure established under the supervision of the CFCB First Chamber.”
The clubs were also banned from trading players – either permanently or on loan – sharing scouting networks and databases, and commercial agreements.
The i Paper first revealed conflicts of ownership at Brighton and Aston Villa – the first of their kind involving English clubs – and their respective sister clubs. Both sets of owners had to restructure ownerships to comply.
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