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Manchester City WIN appeal against Champions League ban: FFP breach overturned by CAS

Manchester City have won their battle with UEFA and their European ban has been lifted.

The Premier League club were banned from European football for two years in February after UEFA found they had committed ‘serious breaches’ of its Financial Fair Play regulations.

City, adamant that they had done nothing wrong, appealed to the Court of Arbitration for Sport (CAS), who heard the case last month.

Manchester City’s coaching team, left-right, Manel Estiarte, Txiki Begiristain, Pep Guardiola, Omar Berrada and Ferran Soriano celebrate the news of the club’s ban being overturned

Man City will be able to play in the Champions League next season after ban was overturned

Man City will be able to play in the Champions League next season after ban was overturned 

MANCHESTER CITY STATEMENT

‘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.’

And this morning, they announced that City did not disguise equity funding but did fail to co-operate with UEFA. The exclusion was lifted while a €30m (£27m) fine was reduced to €10m (£9m).

Sportsmail understands that any challenge of the ruling by UEFA to the Swiss Federal Courts is ‘unlikely’ at this stage. 

CAS released their verdict on Monday morning, and said: ‘Most of the alleged breaches reported by the Adjudicatory Chamber of the CFCB (UEFA’S Club Financial Control Body) 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.’ 

City were also quick to release a statement of their own, welcoming the news that they will be able to play in the Champions League next season.

Manchester City have won their appeal against UEFA's two year ban from European football

Manchester City have won their appeal against UEFA’s two year ban from European football

Manchester City will line up against the biggest clubs in Europe after their ban was overturned

Manchester City will line up against the biggest clubs in Europe after their ban was overturned

WHY WERE MAN CITY BANNED IN THE FIRST PLACE?

Back in February, Manchester City were slapped with a two-year ban from European competition after being deemed to have committed ‘serious breaches’ of UEFA’s club licensing and Financial Fair Play regulations.

The allegations were first made by German newspaper Der Spiegel, who published leaking documents back in November 2018 that claimed City had inflated the value of a sponsorship deal and misled UEFA.

To be more precise, they claimed that City’s parent company Abu Dhabi United Group channelled extra investment into the club under the guise of sponsorship deals with Abu Dhabi companies, as a way of circumventing FFP regulations.

Der Spiegel alleged that the sponsorship deals were not as big as declared, with owner Sheikh Mansour making up the shortfall with his own cash. 

The club said: ‘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.’ 

Just minutes after the decision was announced, UEFA released a statement on their own website, too.

It 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 launched a probe following the publication of hacked emails in the German media. On February 14, they announced that City had broken the rules by overstating sponsorship revenue between 2012 and 2016. Along with the ban, City were fined £26.9m.

Pep Guardiola had insisted he hasn't lost any sleep over the outcome of City's appeal to CAS

 Pep Guardiola had insisted he hasn’t lost any sleep over the outcome of City’s appeal to CAS

UEFA’S REACTION

In a statement following the news on Monday morning, UEFA said… 

‘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.’

Ahead of their appeal, City said they had ‘irrefutable evidence’ to support their case.

Manager Guardiola had insisted he has not lost any sleep over the initial decision, which could have cost City around £170m in lost revenue – based on TV and prize money, plus gate receipts, although the latter is in doubt anyway due to the coronavirus pandemic – if their appeal was rejected.

Perhaps more worrying than the ban and initial £27m fine was the fear of a mass player exodus from the club if the ban was upheld. 

City’s biggest stars – including Kevin De Bruyne, who at the age of 29 is in the final peak years of his career, and Raheem Sterling – could have decided to leave last year’s Premier League champions if the ban were upheld or even reduced to a one-year suspension.

Even more importantly, Guardiola, perhaps the greatest manager in the game today, could also have decided that he could not do without competing among the elite.  

However, Guardiola himself insisted that he hadn’t lost any sleep over the decision and was confident City would be playing in the Champions League next season.

Following City’s thrashing of Brighton on Saturday, Guardiola said: ‘I am going to sleep because I cannot do anything. 

‘I am confident in the club, I know the arguments, the defence they have and in the next season we are going to be in the place where we won on the pitch this season.’ 

Arch rivals Manchester United would have been one of the main beneficiaries of a City ban

Arch rivals Manchester United would have been one of the main beneficiaries of a City ban

Chelsea will now have to finish in the top four if they want to play Champions League football

Chelsea will now have to finish in the top four if they want to play Champions League football

Champions League expulsion for City would have meant a fifth-placed finish was be sufficient to qualify for the competition, as City sit well clear of the rest in second place in the table, behind only champions Liverpool.

Chelsea, Leicester, Manchester United, Sheffield United, Wolves, Tottenham and Arsenal, who are respectively placed third down to ninth in the table, could potentially have benefitted from the ban being upheld due to the shift in requirement for Champions League and Europa League qualification.

UEFA’s club financial control body had originally found that City had committed a ‘serious’ breaches of the organisation’s FFP rules between 2012-16. 

The investigation followed claims in German magazine Der Spiegel, based on leaked documents, that City’s owner Sheikh Mansour was topping up the value of sponsorship agreements, in breach of FFP rules.

City always denied the magazine’s claims and described the investigation as ‘flawed’ due to the leaked documents.

Read more at DailyMail.co.uk


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