Manchester City could be forced to name a smaller squad for next season’s Champions League campaign as a punishment for breaching Financial Fair Play rules, the
City would also be heavily fined after UEFA found that their spending had contravened the new regulations, which come into force next season. City have been offered a punishment that contains a mix of financial and non-financial sanctions but would have to admit their guilt. If they decide to contest the decision, the punishment would be more severe.
The Premier League club have until Thursday to respond and if a deal is not made, the case would go to an adjudication body, who will then make a ruling. The strictest possible punishment is expulsion from the competition.
City could though agree to the squad restriction, which would limit the number of players they have available for the Champions League next season and potentially limit the signings they can make this summer, as not all of City’s squad will be eligible for the Champions League.
The club posted losses of almost £150m between 2011 and 2013. Clubs are allowed to lose £37.2m once exceptions are made. City attempted to use a £350m sponsorship deal with Etihad to account for the losses but there are rules in place against deals with companies linked to the owners of a club. Paris Saint-Germain also face sanction from UEFA over FFP after a similar argument was made and rejected.
Around 20 clubs have breached FFP rules, the Telegraph adds, and the identities of them will be known in around a week’s time.
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