The European Union of Football Association (UEFA) has announced that Manchester City has been banned from participating in European competitions for two seasons after “committing violations of the financial fair play regulations”.
The penalty imposed on the English club included a fine of 30 million euros.
UEFA said in a statement that City had committed “serious violations” of the regulation, while the club confirmed in a quick reaction that it intended to appeal the decision before the International Court of Sports Arbitration.
If the referee supports, City will not be able to participate in the next edition of the Champions League if he qualifies for the major continental competition.
The rules for fair financial play aim to prevent clubs from obtaining unlimited funds from sponsorship agreements that are inflated with institutions affiliated with the owners of these clubs.
The investigation authority of the European Union’s supervisory committee said that Manchester City violated the rules by “amplifying sponsorship profits in its accounts and data sent to UEFA between 2012 and 2016, and it has not cooperated in the investigation.”
It was reported that the club could be subject to a deduction of points from its balance in the English Premier League because the same financial regulations for fair play apply in the English Football Association despite the differences between the English and European regulations.
“In December 2018, the chief of the UEFA investigating team publicly foresees the outcome of the investigation and predicts the sanctions that he intends to impose on Manchester City before even the investigation begins,” City said in his statement.
City are expected to face Real Madrid in the Champions League round sixteen, as the draw resulted in the first match in Madrid and the second in Manchester.
UEFA announced this investigation after the German newspaper Der Spiegel published a leaked document stating that Manchester City is huge in the value of sponsorship contracts in order to deceive the body that manages European football.