The reason for this decision was due to a breach of UEFA's multi-club ownership regulations. One of the club's majority owners, John Textor, is also the president of the Eagle Football Group, which has a controlling stake in Olympique Lyonnais, a French football club. This is not allowed under UEFA's rules.

However, Ligue 1 club Lyon, who also qualified for the second-tier continental competition, were allowed to compete. Crystal Palace argued that a new investor, Robert Wood "Woody" Johnson, had signed a binding agreement to buy the controlling stake in the club, subject to approval from the Premier League.

Unfortunately, the club missed the deadline to comply with the multi-club ownership rules before winning the FA Cup in May, which earned them a place in European competition. If Crystal Palace's appeal is unsuccessful, Nottingham Forest, who finished seventh in the Premier League, will take their place in the Europa League.