English Premier League champions Manchester City on Friday were banned from the Champions League for two seasons by UEFA for “serious breaches” of spending rules and failing to cooperate with investigators.
The Abu Dhabi-owned team were also fined 30 million euros (US$33 million) after an investigation that was sparked by leaked internal correspondence showing City overstated sponsorship revenue and masked the source of revenue from deals tied to the Gulf nation in a bid to comply with the UEFA Financial Fair Play Regulations.
The punishment prevents City from playing in any European competition, including the Europa League, until the 2022-2023 season. It could have a significant effect on the club’s ability to sign players and retain manager Pep Guardiola, whose contract expires after next season.
The verdict was delivered following a hearing of UEFA’s club financial control body on Jan. 22.
“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,” UEFA said in a statement. “The adjudicatory chamber has also found that in breach of the regulations the club failed to cooperate in the investigation of this case.”
In a statement claiming that UEFA’s investigation was “flawed” and “left little doubt in the result,” City announced plans to appeal.
“This is a case initiated by UEFA, prosecuted by UEFA and judged by UEFA,” the club said. “With this prejudicial process now over, the club will pursue an impartial judgement as quickly as possible and will therefore, in the first instance, commence proceedings with the Court of Arbitration for Sport at the earliest opportunity.”
Among soccer leaders calling for City to be punished was La Liga president Javier Tebas, who has been critical of how “funding by state aid distorts European competitions.”
“UEFA is finally taking decisive action,” Tebas said on Friday. “Enforcing the rules of financial fair play and punishing financial doping is essential for the future of football.”
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