The FA Cup winners had earned a Europa League place for the upcoming season but were removed after UEFA ruled in March that the club had breached its multi-club ownership regulations.

The governing body found that Eagle Football Group - the majority owners of French club Lyon - also held a controlling stake in Palace through chairman John Textor, creating a conflict under competition rules.

Palace appealed the decision to CAS, but their challenge failed on Monday. As a result, they will now compete in the third-tier Conference League instead of Europe's secondary competition. Their Europa League spot has been handed to Nottingham Forest, who finished seventh in the Premier League last season.

In a strongly worded statement, Palace expressed frustration at the outcome, claiming the ruling ignored the team's on-field achievements.

"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," the statement from Palace read.

"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.

"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.

"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.

"While we respect the CAS tribunal members, the process is designed to severely restrict and, in our case, make it almost impossible to receive a fair hearing.

"The denial of all disclosure requests to obtain correspondence between the relevant parties, the refusal to allow witness testimony from those involved, and the general lack of formality and respect for law mean decisions cannot be properly challenged, leading to pre-determined outcomes.

"UEFA's decision has wider implications for the governance of the sport. A combination of poorly conceived regulations and their unequal application means our brilliant fans will be deprived of the chance to watch this team compete in the Europa League for the first time in our history.

"This should be a turning point for football. UEFA must fulfil its mandate to pass coherent rules which are properly communicated and applied, with reasonable cure periods to resolve uncertainty and consistent sanctions, treating all clubs equally with a proper appeal process.

"The European Court of Justice has made it clear that rulings similar to this will be under greater scrutiny from national courts in future. Only then will fairness and due process be granted to every team.

"Although we continue to take legal advice on the next steps, we will compete in the Conference League with the same determination and will to win that characterises this incredible club."

The case has reignited debate over UEFA's multi-club ownership rules, designed to prevent potential conflicts of interest but increasingly challenged as football's ownership structures grow more complex.