Manchester City face threat of Champions League ban as Uefa open FFP investigation

Manchester City could face a ban from the Champions League after Uefa opened an investigation into a potential breach of their Financial Fair Play regulations.

City have faced a series of allegations, published in German news magazine Der Spiegel based on several documents and emails obtained by the Football Leaks website, that they have violated Uefa’s financial rules. The most recent claims, published last Friday, allege that City’s owners used shadow firms to circumvent FFP rules. In November, Der Spiegel also said that City had “deceived” Uefa.

City have been accused of using owner Sheikh Mansour’s money to inflate sponsorship deals and using a third-party, Fordham Sports Management, to offload image rights and lower their wage bill.

Ban next season a possibility

Uefa’s investigation will take time and City will not be banned from the Champions League this season. They face Bundesliga side Schalke in the second leg of their last 16 tie next week, carrying a 3-2 lead from the first leg.

But they could be banned from competing in next season’s competition if Uefa’s Investigatory Chamber finds them in breach of their FFP rules for a second time.

Uefa statement on Thursday night:

“The Investigatory Chamber of the independent Uefa Club Financial Control Body has today opened a formal investigation into Manchester City FC for potential breaches of Financial Fair Play (FFP) regulations.

“The investigation will focus on several alleged violations of FFP that were recently made public in various media outlets.

“Uefa will make no further comments on the matter while the investigation is ongoing.”

In January, Uefa’s chief investigator revealed that if found guilty of the series of allegations against them, City would face a ban from Uefa’s premier competition. “If it is true what has been written, there might be a serious problem,” Yves Leterme said. ”This can lead to the heaviest punishment: exclusion from the Uefa competitions.”

City deny wrongdoing

City vehemently denied any wrongdoing on Thursday night and have repeatedly pointed to their claim that the evidence was hacked or stolen from the club. “Manchester City welcomes the opening of a formal Uefa investigation as an opportunity to bring to an end the speculation resulting from the illegal hacking and out of context publication of City emails,” the club said in a statement. “The accusation of financial irregularities are entirely false. The club’s published accounts are full and complete and a matter of legal and regulatory record.”

City are also under investigation by the Football Association for an alleged £200,000 payment to the agent of Jadon Sancho when they signed the player from Watford when he was 14 years old, also revealed by Football Leaks documents and published in Der Spiegel.

City have been found in breach of Uefa’s FFP rules previously. They were fined £49m in 2014 for contravening the regulations, although that was reduced to £18m after they complied with measures agreed as part of the sanctions.

Ban would be a blow

The Champions League is a competition that City’s owners have long coveted, having won every other trophy since they bought the club in 2008, and they believe manager Pep Guardiola can deliver it.

Back in December, amid a raft of allegations, Guardiola insisted that he had spoken to City chairman Khaldoon al-Mubarak and chief executive Ferran Soriano and was adamant that the club would not be suspended from competing.

“We will not be banned, no,” Guardiola said. “That’s what I think because of what my chairman and my CEO have explained to me and I trust in them. If it happens, because Uefa decide that, we will accept it and move forward.”

A Champions League ban could have huge ramifications for potential players joining the club.