The demotion was due to alleged multi-club ownership breaches involving John Textor, president of Olympique Lyonnais' majority owners Eagle Football Group, who also had a controlling stake in Palace. However, Eagle sold their stake in Palace last month, and the club is appealing against the demotion at the Court of Arbitration for Sport (CAS), with the hearing set for this month.
"If we have to play in the Conference League, it feels like we've been punished," said manager Oliver Glasner. "We hope that this verdict will bring us back into the Europa League because we haven't done anything wrong."
Adding to Glasner's worries ahead of Sunday's match are injuries to striker Eddie Nketiah, who is out for eight weeks, and midfielder Cheick Doucoure, who will not return for another two months. Other injured players include Matheus Franca and Caleb Kporha.
"We are short of numbers, and if we want to be competitive, we need to add players with good quality," Glasner said. He added that Palace have been "quite passive" in the transfer window, and that they need to add a few players to be ready for all the competitions.
Glasner said that Eberechi Eze, who scored the FA Cup winner, will play in Sunday's match, despite rumors of a potential move away. The manager also stated that his players are looking forward to taking on Premier League champions Liverpool, and that it's a chance to win a trophy and compete with the champions.
"Liverpool is a top team, and it's much better than playing friendlies," Glasner said. "It's a chance to show our personality again."