The Court of Arbitration for Sport on Monday lifted the two-year ban on Manchester City thereby allowing the club to play in the Champions League next season. City will have to pay a reduced fine of 10 million euros.
Manchester City was banned from playing UEFA competitions, including the Europa League, in February this year and asked to pay a fine of 30 million euros for breaching Financial Fair Play rules.
An investigation led to the Adjudicatory Chamber of UEFA’s Club Financial Control Body (CFCB) concluding that City was guilty of “overstating its sponsorship revenue” between 2012 and 2016. The club has denied any wrongdoing on its part.
The Financial Fair Play rules were introduced in 2011 to deter clubs from overspending. The UEFA had stated that City broke the financial fair play rules by exaggerating the level of sponsorship income from companies in Abu Dhabi.
The CAS panel has now ruled that the decision by the Adjudicatory Chamber of the CFBC should be set aside, and instead, Manchester City Football Club has contravened Article 56 of the Club Licensing and Financial Fair Play Regulations; and the club shall pay a fine of 10 million euros to the UEFA within 30 days from the date of issuance of the arbitral award.
“Manchester City FC did not disguise equity funding as sponsorship contributions but did fail to cooperate with the UEFA authorities,” read the opening of the statement released by CAS.
Manchester City, meanwhile, welcomed the CAS ruling as a “validation of the club’s position”. It thanked the CAS panel members for “their diligence and the due process that they administered”.
“Whilst Manchester City and its legal advisors are yet to review the full ruling by the Court of Arbitration for Sport, 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,” City said in a statement.
The UEFA also said it has taken note of the CAS panel’s decision that there was not enough evidence to suggest the authenticity of the CFBC’s conclusions in the case. However, it said the governing body remained “committed to its principles”.
“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,” the UEFA said in a statement.