Manchester City have won their appeal to the Court of Arbitration for Sport (CAS) over alleged financial fair play (FFP) violations and are free to play in the Champions League next season, it was announced on Monday.
City were originally banned from European competitions for two seasons but won their appeal to CAS, meaning fifth place in the Premier League will no longer qualify for the Champions League. Manchester United occupy fifth in the table as it stands.
An initial fine of €30 million was also reduced to €10m following Monday’s verdict.
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A statement from CAS read: “The CAS award emphasized that most of the alleged breaches reported by the Adjudicatory Chamber of the CFCB were either not established or time-barred.
“As the charges with respect to any dishonest concealment of equity funding were clearly more significant violations than obstructing the CFCB’s investigations, it was not appropriate to impose a ban on participating in UEFA’s club competitions for MCFC’s failure to cooperate with the CFCB’s investigations alone.
“However, considering i) the financial resources of MCFC; ii) the importance of the cooperation of clubs in investigations conducted by the CFCB, because of its limited investigative means; and iii) MCFC’s disregard of such principle and its obstruction of the investigations, the CAS Panel found that a significant fine should be imposed on MCFC and considered it appropriate to reduce UEFA’s initial fine by 2/3, i.e. to the amount of EUR 10 million.”
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City took their case to CAS on June 8 after they were initially handed a two-year ban from UEFA competition and a €30m fine issued to them by the Adjudicatory Chamber of the Independent Club Financial Control Body (CFCB).
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A Manchester City statement read: “Whilst Manchester City and its legal advisors are yet to review the full ruling by the Court of Arbitration for Sport (CAS), the Club welcomes the implications of today’s ruling as a validation of the Club’s position and the body of evidence that it was able to present. The Club wishes to thank the panel members for their diligence and the due process that they administered.”
The CFCB found that City “committed serious breaches” of FFP regulations — which limit the net losses clubs can accrue over a three-year period — between 2012 and 2016 and failed to cooperate with the subsequent investigation.
It was said that the club overstated “its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016.”
In response, City claimed the process was “flawed” and said there was “irrefutable evidence” that would lead to them winning an appeal. FFP was introduced by UEFA at the start of the 2011-12 campaign, as a way of stopping clubs falling into financial difficulties by overspending.
Ahead of Monday’s verdict, manager Pep Guardiola had also voiced his confidence that City would get the ban overturned.
“The intention is every season to play in the Champions League as best as possible, it’s not about Monday,” Guardiola said.
“On Monday, I’m so confident because I know and hear the arguments of the club. Next season we will be there and after I will give my opinion and the club will give a statement.”
A UEFA statement read: “UEFA takes note of the decision taken by the Court of Arbitration for Sport to reduce the sanction imposed on Manchester City FC by UEFA’s independent Club Financial Control Body for alleged breaches of the UEFA Club Licensing and Financial Fair Play regulations.
“UEFA notes that the CAS panel found that there was insufficient conclusive evidence to uphold all of the CFCB’s conclusions in this specific case and that many of the alleged breaches were time-barred due to the 5 year time period foreseen in the UEFA regulations.
“Over the last few years, Financial Fair Play has played a significant role in protecting clubs and helping them become financially sustainable and UEFA and ECA remain committed to its principles.
“UEFA will be making no further comments on the matter.”
City are also still able to compete in this season’s Champions League. They hold a 2-1 first-leg lead over Real Madrid in the round of 16, and will play either Juventus or Lyon in the quarterfinals if they progress.