Palace were huge underdogs to win the FA Cup and their joy at qualifying for Europe for the 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“.
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.
In June, Forest asked for clarity from Uefa on Palace’s position in Europe with the club standing to gain if Palace were demoted to the Conference League.
Forest 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 of playing in the Europa League by agreeing to sell his 43% stake to New York Jets owner Woody Johnson in June, but the deal is yet to be completed.
Textor later also resigned from his leadership position at Lyon.
Uefa decided to delay their decision on Palace’s ruling at the end of June, while the club indicated it would almost certainly launch a legal fight if their Europa League place was revoked.