Manchester City may face a transfer ban or a significant fine over the spending spree that launched the club into the superpower it is today. The spending could be in breach of UEFA's cost-control rules. The club's owner, Sheikh Mansour bin Zayed al Nahyan, is facing a Financial Fair Play sanction barring a late reprieve.
UEFA’s Club Financial Control Body, which was set up to curb “greed, reckless spending and financial insanity” in European football. They will meet on today and Wednesday to rule on which clubs will face sanctions. PSG are also likely to fall foul of FFP rules.
Less than 20 clubs in Europe are thought to be under threat of punishment from the Club Financial Control Body. They have until the body meets to come up with evidence which suggests that they have played by the financial rules. Sanctions may be heavy, but expulsion from European competition is not likely to be considered.
Instead, a transfer embargo or heavy fine is more likely, and could not have come at a worse time for City, who are engaged in one of the most exciting and unpredictable title scraps in recent history.
UEFA declined to name the teams involved, and both City and PSG declined to comment. Arsenal Chelsea, and Manchester United have each confirmed that they are not under investigation.
Those three clubs complied with the regulation prohibiting them from making losses of over €45 million (with some allowable exceptions) between the 2011-12 and 2012-13 seasons. City's losses during that period were in excess of €180 million, so scrutiny from the CFCB was always likely.
Their 10-year deal with Etihad airlines is worth around €420 million, but clubs are expected to prove that there are no existing ties between owners and sponsors. PSG face scrutiny over their much-questioned €200 million-a-year deal with the Qatar Tourism Authority. The measure is intended to prevent owners from artificially inflating the value of such deals, and both clubs claim that their actions are no different from those of Liverpool or Manchester United, for example.
Offending clubs have the opportunity to settle the terms of their sanction or try their luck in front of a five-strong ajudicatory chamber.
Clubs found guilty will be named on May 5 and have the right to appeal to the Court of Arbitration for Sport. Rival clubs are permitted to contest decisions they feel to be too lenient. Arsenal and Everton may call for City's expulsion from the Champions League should the Manchester club be found guilty.
