Palace qualified for the Europa League after winning the FA Cup in May. However, UEFA ruled that the club should be demoted to the Conference League because of a conflict of interest involving a former director, John Textor. Textor also part-owns Lyon, a French football club.

Textor stepped down from his role at Palace in July, but the issue dates back to the end of last season. During that time, Palace won their first major European trophy and secured a place in the competition.

According to UEFA's rules, no owner or co-owner can have a controlling interest in more than one club competing in the same European competition during the same season. Palace argues that Textor did not have a significant enough role in the club to break this rule.

Palace chairman Steve Parish has stated that the club will appeal the decision to the Court of Arbitration for Sport (CAS). He believes that Palace has strong reasons to contest the ruling and is hopeful that the appeal will be successful.

Parish emphasized that the club knows they did not break any rules and that Textor did not have a decisive influence over the club. He also pointed out that the deadline for shareholders to change their ownership structure was March 1st, and Palace had already taken steps to comply with the regulations.

Throughout this process, Palace has maintained that they did not break any rules and are confident that the appeal will be successful.