Crystal Palace's historic FA Cup victory, securing them a spot in the Europa League, is now under threat due to UEFA's multi-club ownership rules. John Textor, co-owner of Crystal Palace through Eagle Football Holdings, also holds a significant stake in Lyon, another Europa League qualifier. UEFA regulations prevent any individual or entity from having a decisive influence over multiple clubs in the same competition, leading to uncertainty surrounding Palace's participation.

To address these concerns, Textor is reportedly willing to sell shares in Crystal Palace to ensure the club can compete in the Europa League. This move highlights the importance of European football for Crystal Palace and the lengths to which stakeholders are willing to go to secure their place in the competition.

Crystal Palace is actively engaging with UEFA to demonstrate that Textor does not exert undue influence over the club's operations. The club insists that it operates independently, with Steve Parish responsible for day-to-day management and that there has been no employee sharing, collaborative strategy or combined partnerships with Lyon. UEFA is believed to be sympathetic to Palace's situation, recognizing the value of their presence in the Europa League after their FA Cup triumph, and is working towards finding a viable solution.

Several sources indicate that Textor is in discussions regarding the sale of Eagle Football Holdings, which could ultimately resolve the multi-club ownership issue. The Times reports that Textor is prepared to sell his stake for less than market value, potentially to his Palace co-owners, to expedite the process.

Nottingham Forest, who finished seventh in the Premier League, have expressed concerns to UEFA and stand to benefit if Palace are unable to compete in Europe. Forest previously addressed similar multi-club ownership issues by diluting their owner's control.

UEFA's club financial control body (CFCB) will decide whether Textor's stakes in both clubs constitute a breach of regulations. Crystal Palace is confident they haven't breached any rules because Textor, through Eagle Football, only has 25 per cent of voting rights. If Palace fails to convince the CFCB, Lyon would retain their Europa League spot due to their higher league finish.

The outcome of UEFA's deliberations is expected later this month.