MANCHESTER — Senior figures within the English game are concerned Manchester City could play in the Champions League next season even if they are relegated for breaching financial regulations, with no automatic mechanism to remove a club who qualify on sporting merit as titleholders. The concern centres on the possibility City win this season's competition — which they last won in 2023 with a 1-0 win over Inter Milan — and therefore qualify regardless of their status in the English domestic pyramid.
An independent commission found City guilty of all charges related to inflating sponsorship revenue by £830m by using sham contracts, as well as hiding other expenses worth an additional £90m. Without this, the commission said City would have failed the profit and sustainability rules in all nine seasons between the 2009-10 and 2017-18 seasons. City continue to strenuously deny any wrongdoing, calling the outcome a "Premier League conspiracy", and last week lodged an appeal against the verdict.
The immediate issue surrounds the Uefa licence, which every club needs in order to play in Europe. The licences are issued by the Football Association, though the process itself is delegated to the Premier League, and are based upon current information which does not take into account sanctions or breaches related to historical offences. If a club fulfil all minimum criteria required for admission, the licence cannot be refused. One source said the issue of City's licence "had been raised" and that a solution "would require the sort of joined up thinking that's been a bit lacking so far", while another added that "licences are awarded on the basis of current financial performance, so the grounds to refuse one are unclear". The key reasons a club may fail relate to overdue payables to other teams, players or outstanding tax liabilities, while match-fixing convictions within the last 10 years or an integrity conflict related to multi-club ownership are considered but would not apply to City.
If the verdict is upheld by the appeal board it is likely City will face severe sanctions, which could include heavy points deductions, a large fine and transfer embargos, with expelling City from the Premier League immediately also an option which remains on the table. The sanctioning hearing, which will determine the level of punishment, is yet to be scheduled. While a points deduction could rule City out of qualifying by league position, it might still be achieved through cup competitions. If they were to win the FA Cup or Carabao Cup — they play Brighton in the fourth round on 28 October — that would provide a place in the Europa League or the Conference League respectively. The Premier League added new clauses to its regulations to set timeframes around disciplinary processes and appeals in the summer, which would mean a judgement on the sanction must come no later than January, but there is no confirmation this applies to the City case.
European football's governing body cannot take any action while the Premier League disciplinary process plays out, but it is understood potential scenarios are likely to be discussed by the Uefa administration and the Uefa club financial control body (CFCB). The Premier League case found City guilty of five charges of breaching Uefa's profit and sustainability rules and Uefa may open a case in accordance with disciplinary regulations to find a way to remove City's eligibility, but this does not provide certainty as the offences are historical. In 2020, City successfully overturned a two-year ban from European club competitions handed down by Uefa after ruling they had committed "serious breaches" of financial fair play regulations between 2012 and 2016 — the same period as the Premier League's investigation — because the Court of Arbitration for Sport ruled the offences were "time-barred" under Uefa's rules. Senior figures both in the English game and in European football are aware how bad the optics would be if City face strong sanctions yet still play in the Champions League and receive the financial rewards which come with it, with concern they could win at CAS again. The debate follows rival clubs pushing for retrospective and future sanctions should the verdict be upheld.