Palace Euro demotion 'biggest injustice in history of football'
The Eagles were ordered on Friday to compete in the Conference League by Uefa for breaching multi-club ownership rules.
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American businessman John Textor owns a stake in Palace and is also the majority owner of French club Lyon, who have also qualified for the Europa League.
"We're devastated," Parish told Sky Sports. "It's a bad day for football. It's a terrible injustice. I do believe nobody want to see this. I don't think Uefa wants to see this. We've been locked out of a European competition on the most ridiculous technicality. Supporters of all clubs should be devastated for us."
Nottingham Forest, who finished seventh in the Premier League last season, could replace FA Cup winners Palace in the Europa League.
Uefa said the Eagles could appeal its ruling with the Court of Arbitration for Sport and Parish said they are set to do so.
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The rules of European football's governing body state clubs owned, to a certain threshold of influence, by the same person or entity cannot compete in the same European competition.
Uefa's rules set a deadline of 1 March 2025 to show proof of multi-club ownership restructuring - a deadline which Palace missed.
Palace argued Textor does not hold any decisive influence at the club, but the Premier League side's defence was not accepted.
"Everyone knows we're not part of a multi-club set-up," added Parish. "We don't share any staff. We're caught up in a rule that wasn't put there for us. I don't understand why the panel has come to the conclusion they have done. I think we've shown John had no influence over our club.
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"This is a ludicrous decision. We will ask the appeal court to listen to our argument."
Lyon, who also qualified for the Europa League, take precedence over Palace because of their higher league finish in the previous campaign.
The seven-time French champions finished sixth in Ligue 1, with Palace 12th in the Premier League but qualifying for European competition by winning the FA Cup.
Earlier this week, Lyon won their appeal against relegation from Ligue 1 after they were demoted for their financial state.
Had their relegation been upheld, they had agreed with Uefa to be excluded from the Europa League, clearing the way for Palace to play in the competition.
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English football has two allocated Europa League spots, with Aston Villa securing the other after finishing sixth in the table, a point clear of Forest.
How did we get here?
Palace were huge underdogs to win the FA Cup, beating Manchester City 1-0, and their joy at qualifying for Europe for a first time quickly turned to unease when the club realised their spot may be in doubt.
Uefa's regulations around multi-club ownership and European competitions are in place to prevent collusion.
In the governing body's rulebook, a club is required to prove they are not "simultaneously involved in any capacity whatsoever in the management, administration, and/or sporting performance of more than one club participating in a Uefa club competition".
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Textor's Eagle Football owns a 43% stake in Palace and a 77% stake in Lyon, but the Premier League side argued they are an entity that operates entirely independently.
Forest asked for clarity from Uefa in June on Palace's position in Europe. Their owner Evangelos Marinakis, who controls Greek side Olympiakos, avoided regulations around multi-club ownership by diluting his control of the Premier League side.
Textor took similar steps to help Palace's prospects by agreeing to sell his 43% stake to New York Jets owner Woody Johnson in June, but the deal has yet to be completed.
Textor also later resigned from his leadership position at Lyon.
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Uefa delayed their decision on Palace's ruling until the outcome of Lyon's domestic case, while Parish's side indicated they would almost certainly launch a legal fight if their Europa League place was revoked.
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