The reason for their demotion is that the club's owner, John Textor, also owns a stake in Lyon, which qualified for the Europa League. This is against UEFA's rules, but Palace argue that other clubs have been allowed to do the same thing.
They will point out that Manchester City and Girona were allowed to compete in the Champions League, while Manchester United and Nice were allowed to compete in the Europa League, despite having similar ownership structures.
Palace will also argue that UEFA rules allow clubs to set up blind trusts to navigate the regulations, and that members of the European Club Association were told that the deadline for multi-club ownership issues was not certain and would be allowed until May 31st.
The club's manager, Oliver Glasner, is confident that their appeal will be successful and that they will return to the Europa League. They are waiting for the final decision from the Court of Arbitration for Sport.
In the meantime, Palace will be playing in the Conference League, and they have already discovered their play-off opponents, who will be either Norwegian club Fredrikstad or Danish side FC Midtjylland.
Glasner told Sky Sports that the club is not trying to influence the decision, but they are confident that their appeal will be successful.
"We're waiting for the final decision. We're still confident the appeal will be successful and that we will play in the Europa League," he said.