Palace claim sporting merit 'meaningless' after Europa League demotion
The FA Cup winners have been forced to play in this season's Conference League after European football's governing body UEFA ruled in July that American businessman John Textor had control or influence at both Palace and French club Lyon.
Palace tried to have the punishment overturned, but on Monday the Lausanne-based Court of Arbitration for Sport announced the Premier League club had lost their appeal.
Nottingham Forest are set to take Palace's spot in the Europa League.
Palace chairman Steve Parish had already been vocal in his criticism after the initial demotion and, with their fate sealed, the south London club again blasted the decision.
"At a time when we should be celebrating our victory in the Community Shield at Wembley, the decision by UEFA and followed by the Court of Arbitration for Sport shows that sporting merit is rendered meaningless," Palace said in a statement.
"When we won the FA Cup against Manchester City on that momentous day in May, our manager and players earned the right to play Europa League football.
"We have been denied that opportunity. It appears that certain clubs, organisations and individuals have a unique privilege and power.
"This growing and unhealthy influence has shattered the hopes and dreams of Crystal Palace supporters, and does not bode well for aspirational teams all over Europe competing to progress when rules and sanctions are unevenly applied in the most flagrant way."
UEFA regulations state that where one or more clubs are found to have shared ownership, they cannot play in the same competition, and Lyon held on to the Europa League spot by virtue of their higher league position.
Palace missed a March 1 UEFA deadline for team in multi-club groups to change their ownership structure.
Textor has since sold his shares to New York Jets owner Woody Johnson, a takeover completed in late July.
"Multi-club structures hide behind the charade of a 'blind trust' while clubs such as ours, who have no connection to another club whatsoever, are prevented from playing in the same competition," the Palace statement added.
"To compound the injustice, clubs that appear to have huge informal arrangements with each other are also allowed to participate and even possibly play against each other.
Palace added that the process was "designed to severely restrict and, in our case, make it almost impossible to receive a fair hearing".
Palace beat Premier League champions Liverpool in the Community Shield at the weekend, winning a penalty shootout after the match finished 2-2 in 90 minutes.
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