Senior figures in English football are reportedly concerned that Manchester City could still compete in next season’s Champions League even if they are relegated from the Premier League over financial rule breaches.
The situation centres on a possible scenario in which City win the Champions League, securing qualification for the following season as reigning European champions regardless of their position in the English football pyramid.
There is currently no automatic procedure to exclude a club from a European competition if it qualifies through its performances on the pitch.
An independent commission found Manchester City guilty of charges relating to the alleged inflation of sponsorship revenue by £830 million through sham contracts. It also found that the club had concealed other expenses worth a further £90 million.
The commission stated that, without the alleged financial manipulation, City would have breached the Premier League’s profit and sustainability rules in each of the nine seasons between 2009-10 and 2017-18.
City strongly deny wrongdoing and have described the outcome as a “Premier League conspiracy”. The club has appealed against the findings.
Questions Over Man City’s Eligibility for European Football
Several senior figures within English football have reportedly raised concerns about the possibility of Manchester City qualifying for the Champions League next season.
Their concern is that if the club’s appeal fails and severe punishment follows, allowing City to continue competing among Europe’s leading teams—and collect the associated financial rewards—could prove difficult to justify.
The immediate question concerns the Uefa licence required by clubs to participate in European competitions.
One source indicated that the issue of City’s licence had already been discussed, adding that resolving it would require greater coordination between the relevant authorities.
The Football Association issues these licences, although the Premier League manages the process on its behalf.
Licensing decisions are based on a club’s current circumstances and do not automatically account for historical financial breaches or any penalties that might follow from them.
Where a club meets all the minimum admission requirements, its licence cannot simply be refused. Potential reasons for failing the criteria include unpaid debts to other clubs, outstanding player payments or overdue tax liabilities.
Certain other matters, including match-fixing convictions within the previous 10 years and conflicts involving multi-club ownership, can also be considered. However, these provisions would not apply to City in this case.
One source questioned the available grounds for refusing the club a licence, noting that the assessment focuses on current financial performance.
If the appeal does not succeed, Manchester City could face substantial penalties. Possible sanctions include a significant points deduction, a heavy financial penalty or restrictions on transfers.
A hearing to determine the punishment has yet to be scheduled.
A points deduction could prevent City from qualifying for the Champions League through their league position. However, success in a domestic cup or European competition could create alternative routes into continental football.
Immediate expulsion from the Premier League also remains a possible sanction.
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Could Uefa Take Disciplinary Action Against City?
The potential consequences extend beyond English football. Senior figures in both the domestic and European games are aware that Manchester City competing in the Champions League after receiving severe sanctions could create a difficult situation for the sport.
The uncertainty is compounded by concerns that the disciplinary process, including any appeal against the punishment, might not be completed before the season ends.
The Premier League introduced new regulatory clauses during the summer intended to establish clearer deadlines for disciplinary proceedings and appeals. If those provisions apply to City’s case, a decision on the sanction would need to be delivered by January. However, it has not been confirmed whether the rules cover this particular investigation.
Champions League qualification is not the only potential issue. Winning the FA Cup or Carabao Cup could also provide City with a route into European competition, through the Europa League or Conference League respectively.
City are scheduled to face Brighton in the fourth round of the Carabao Cup on 28 October.
Uefa cannot intervene while the Premier League’s disciplinary proceedings remain ongoing. Nevertheless, the European governing body’s administration and Club Financial Control Body are understood to be considering the possible scenarios.
The Premier League investigation also found City guilty of five charges involving breaches of Uefa’s profit and sustainability rules.
Uefa could potentially open its own disciplinary case in an attempt to establish grounds for making the club ineligible for European competition. However, the historical nature of the alleged offences could complicate such a move.
City’s Previous Victory Against Uefa Raises Further Questions
Manchester City successfully overturned a two-year ban from European competitions in 2020.
Uefa had imposed that suspension after finding that the club committed serious financial fair play breaches between 2012 and 2016, a period that also formed part of the Premier League’s investigation.
However, the Court of Arbitration for Sport overturned the ban, ruling that the relevant offences were time-barred under Uefa’s regulations.
That previous legal victory has added to concerns about whether European football’s governing body could successfully prevent City from participating in next season’s Champions League.
If City’s appeal against the Premier League findings fails and they subsequently win the Champions League, Uefa’s Club Financial Control Body could face pressure to identify a disciplinary route to exclude them from the following season’s competition.
Yet City’s earlier success at the Court of Arbitration for Sport demonstrates the potential legal difficulties involved.
For now, the situation remains unresolved. The outcome of City’s appeal, the punishment eventually imposed and any subsequent action by Uefa could all determine whether the club remains eligible for European football next season.