Concerns are growing among senior English football officials that Manchester City could continue playing in the Champions League and other European competitions next season even if they are relegated from the Premier League.
City face severe sanctions if their appeal against the judgment of an independent commission is unsuccessful. The commission found the club guilty of all charges relating to alleged breaches of the Premier League’s financial rules over nine seasons, as well as most of the allegations concerning a failure to co-operate with the league’s investigation.
The commission ruled that City had inflated sponsorship revenue by about £830m through fictitious contracts and concealed further expenditure worth approximately £90m.
It also concluded that City would not have complied with the Premier League’s profitability and sustainability rules between the 2009-10 and 2017-18 seasons without those breaches.
The club denies all the allegations and has appealed against the decision.
Relegation among possible sanctions
If that appeal fails, Manchester City could face a range of punishments, including a points deduction, financial penalties and potentially expulsion from the Premier League.
However, according to the BBC, officials are concerned that City could still take part in the Champions League or another European competition next season if their league position or other sporting achievements earn them qualification.
City are currently competing in the Champions League. Should they win the competition for the second time in their history, they would automatically qualify for the following season’s tournament.
Even if they do not win the Champions League, they could secure a place in one of UEFA’s competitions through their Premier League position. Depending on where they finish and the allocation of European places, that could be the Champions League, the Europa League or the Conference League.
The difficulty is that there is no automatic mechanism to remove City from European competition if they qualify on sporting merit after suffering a domestic punishment.
UEFA licences are awarded on the basis of a club’s current financial position, meaning the legal grounds for refusing Manchester City a licence are unclear at present.
UEFA could open separate investigation
Senior figures in English and European football recognise the potential impact of City being heavily sanctioned domestically while continuing to compete in the Champions League as normal.
The Premier League’s investigation also found Manchester City guilty of five breaches of UEFA’s financial sustainability rules.
As a result, UEFA could decide to launch a separate investigation under its disciplinary regulations. That process could examine whether there is a legal route to prevent Manchester City from competing in European competitions if they qualify under the sporting criteria, depending on the sanctions imposed on the club.