Crystal Palace's dam, Hermieres, won the Prix de Diane in 1961, but had previously had a mediocre record as a broodmare, producing only two minor winners.
Crystal Palace raced in second place behind his stable companion Concertino, who set a fast pace for 400m before slowing, allowing the rest of the runners to move closer approaching the final turn.
Catus, Olantengy, Funny Hobby, Carwhite and Pharly were close behind, and the fact that the first eight home were covered by less than four lengths led to speculation that the standard of the race was unexceptional.
[6] In July, Crystal Palace was sent to England to contest Britain's most prestigious all-aged race, the King George VI and Queen Elizabeth Diamond Stakes over one and a half miles at Ascot Racecourse.
Having been settled towards the rear of the field, he appeared to be outpaced on the approach to the final turn, and although he made up ground in the straight he never looked likely to win, and finished fourth behind The Minstrel, Orange Bay and Exceller.
Starting the joint-second-favourite at odds of 8/1 he was positioned prominently throughout the race and made steady progress in the straight without ever looking likely to win and finished third of the twenty-six runners behind Alleged and Balmerino.
In the official International Classification for 1977, Crystal Palace was ranked fourth among the three-year-olds behind Alleged, Blushing Groom and The Minstrel, and the ninth best horse in Europe of any age.