Senior figures in English football have expressed concerns that Manchester City may participate in the Champions League next season, even if they are relegated from the Premier League due to financial regulation breaches. This concern arises from the possibility of City winning the Champions League, which would grant them a spot in the competition as titleholders, regardless of their domestic league status.
An independent commission recently found City guilty of inflating sponsorship revenue by £830m and hiding expenses worth £90m. The club has strenuously denied any wrongdoing, calling the outcome a "Premier League conspiracy," and has lodged an appeal against the verdict. The commission's findings indicated that City would have failed profit and sustainability rules in all nine seasons between 2009-10 and 2017-18.
The issue of City's potential participation in the Champions League centers around the Uefa licence, which every club needs to play in Europe. Licences are issued by the Football Association, with the process delegated to the Premier League, and are based on current information that does not account for historical offences or sanctions. A source noted that "licences are awarded on the basis of current financial performance, so the grounds to refuse one are unclear."
If City's appeal is unsuccessful, they may face severe sanctions, including heavy points deductions, a large fine, and transfer embargoes. While a points deduction could affect their league position, City might still qualify for the Champions League through cup competitions. Expelling City from the Premier League immediately is also an option being considered.
Uefa may choose to open a disciplinary case against City, but European football's governing body cannot take action while the Premier League disciplinary process is ongoing. Potential scenarios are likely to be discussed by the Uefa administration and the Uefa club financial control body. City's past experiences, including a successful appeal against a two-year ban from European club competitions in 2020, have raised concerns about their potential eligibility.
The Premier League case found City guilty of five charges of breaching Uefa's profit and sustainability rules. Uefa may open a case to find a way to remove City's eligibility, but the historical nature of their offences complicates this process. City's successful appeal against a previous ban has led to concerns that they could overturn any future sanctions.
Key stakeholders, including senior figures in English football and European governing bodies, are aware of the optics of City facing strong sanctions yet still playing in the Champions League. The Premier League added new clauses to its regulations to set time frames around disciplinary processes and appeals, but it is unclear if these apply to the City case.
Key points
- Manchester City faces potential relegation and severe sanctions for breaching financial regulations.
- Senior figures worry City could still participate in the Champions League if they win the competition or qualify through cup results.
- Uefa and the Premier League are exploring options to address the situation, but City's past experiences may complicate their eligibility.