Senior figures in English football have expressed concerns that Manchester City may still participate in the Champions League next season, even if they are relegated from the Premier League due to breaching financial regulations. This concern arises from the possibility of City winning the Champions League, which would grant them qualification for the competition as titleholders, regardless of their domestic league status.
An independent commission recently found Manchester 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 centers around the Uefa licence required for European competition participation, issued by the Football Association but delegated to the Premier League. Licences are based on current information and do not account for sanctions or breaches related to historical offences. If a club fulfils all minimum criteria, including no overdue payables, tax liabilities, or match-fixing convictions, the licence cannot be refused.
A source noted that licences are awarded based on current financial performance, making it unclear what grounds could be used to refuse City a licence. If the verdict is upheld, City may face severe sanctions, including points deductions, fines, and transfer embargoes. The sanctioning hearing, which will determine the level of punishment, has yet to be scheduled.
Senior figures in English and European football are aware of the negative optics if City faces strong sanctions yet still plays in the Champions League. The Premier League has added clauses to its regulations to set time frames around disciplinary processes and appeals, but it is unclear if these apply to the City case.
Uefa may choose to open a disciplinary case, and European football's governing body cannot take action while the Premier League process plays out. Potential scenarios are likely to be discussed by the Uefa administration and the Uefa club financial control body. City's offences are historical, which may complicate Uefa's ability to remove their eligibility.
In 2020, City successfully overturned a two-year ban from European club competitions handed down by Uefa due to the offences being "time-barred" under Uefa's rules. If City win the Champions League and are not successful in their appeal, the CFCB will need to find a disciplinary measure to remove them from next season's competition, but City's past success against Uefa through Cas raises concerns they could do so again.
Key points
- Manchester City faces potential relegation and severe sanctions for breaching financial regulations.
- The club's possible participation in the Champions League despite sanctions has raised concerns among senior football figures.
- Uefa and the Premier League are exploring ways to address the situation, but City's past experiences may complicate their efforts.
