Manchester City have been banned from all European club competition for the next two seasons after being found to have committed “serious breaches” of Uefa’s club licensing and financial fair play regulations. The ban will also be accompanied by a 30 million euro fine.
In a statement, UEFA said City “overstated its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016”.
The statement continued to read “Following a hearing held on 22 January 2020 the Adjudicatory Chamber of the UEFA Club Financial Control Body (CFCB), chaired by José da Cunha Rodrigues, has today notified Manchester City Football Club of the final decision on the case which was referred by the CFCB Chief Investigator.
The Adjudicatory Chamber, having considered all the evidence, has found that Manchester City Football Club committed serious breaches of the UEFA Club Licensing and Financial Fair Play Regulations by overstating its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016.
The Adjudicatory Chamber has imposed disciplinary measures on Manchester City Football Club directing that it shall be excluded from participation in UEFA club competitions in the next two seasons (ie. the 2020/21 and 2021/22 seasons) and pay a fine of € 30 million.
Manchester City say they are “disappointed but not surprised” by the “prejudicial” decision and will appeal.
City have said publicly and privately they intend to fight the decision. They released a statement, reading: “Manchester City is disappointed but not surprised by today’s announcement by the UEFA Adjudicatory Chamber. The club has always anticipated the ultimate need to seek out an independent body and process to impartially consider the comprehensive body of irrefutable evidence in support of its position.
The Premier League is also continuing its own investigation into City and will not comment on any potential sanctions, however Manchester City are facing a Premier League points deduction, as their punishment for “serious breaches” of UEFA Financial fair play rules also represents a breach of the domestic competition’s regulations as well.
What does this actual mean?
An investigation by Uefa was subsequently conducted after a German newspaper (Der Spiegel) allegedly published leaked documents which stated that Manchester City had inflated the value of their sponsorship deals, the information ultimate led to misleading information towards European football’s governing body.
What are Uefa’s financial fair play rules exactly?
Financial Fair Play was introduced by Uefa to prevent clubs in its competitions from spending beyond their means and stamp out what its then president Michel Platini called “financial doping” within football.
Under the rules, financial losses are limited and clubs are also obliged to meet all their transfer and employee payment commitments at all times.
Clubs need to balance football-related expenditure – transfers and wages – with television and ticket income, plus revenues raised by their commercial departments. Money spent on stadiums, training facilities, youth development or community projects is exempt.
The Club financial control body, set up by Uefa, has the ultimate sanction of banning clubs from Uefa competitions, with other potential punishments including warnings, fines, withholding prize money, transfer bans, points deductions, a ban on registration of new players and a restriction on the number of players who can be registered for Uefa competitions.
What are the allegations?
Uefa launched an investigation after German newspaper Der Spiegel published leaked documents in November 2018 alleging City had inflated the value of a sponsorship deal, misleading European football’s governing body.
Reports alleged City – who have always denied wrongdoing – deliberately misled Uefa so they could meet FFP rules requiring clubs to break even.
City were fined £49m in 2014 for a previous breach of regulations.
What are the FFP rules?
Financial Fair Play was introduced by Uefa to prevent clubs in its competitions from spending beyond their means and stamp out what its then president Michel Platini called “financial doping” within football.
Under the rules, financial losses are limited and clubs are also obliged to meet all their transfer and employee payment commitments at all times.
Clubs need to balance football-related expenditure – transfers and wages – with television and ticket income, plus revenues raised by their commercial departments. Money spent on stadiums, training facilities, youth development or community projects is exempt.
The CFCB, set up by Uefa, has the ultimate sanction of banning clubs from Uefa competitions, with other potential punishments including warnings, fines, withholding prize money, transfer bans, points deductions, a ban on registration of new players and a restriction on the number of players who can be registered for Uefa competitions.
What does this mean for the Premier league race?
If Manchester City finish in the top four and their ban is upheld by the Court of Arbitration for Sport (CAS) , it would mean a Champions League place would go to the team who finish fifth in the Premier League.
The rule ultimately states that “A club which is not admitted to the competition is replaced by the next best-placed club in the top domestic championship of the same association, provided the new club fulfills the admission criteria.”
As it stands Sheffield United currently occupy 5th Place with 39 points after 26 Games, Tottenham, Wolves, Everton and Manchester United however all sit just 3 points adrift the top 5 spot.
The ban also places immense pressure on Pep Guardiola’s position and future at the club, his contract currently valid until the summer of 2021, the question however is whether the trophy winning manager will stick it out now that his team face possibilities of sitting out from the Champions League.
Read more on the story as it unfolds at Skyports.com