Football: Financial rules at risk of being 'scuppered' if Man City overturn European ban

Uefa says Manchester City have breached FFP rules that place restrictions on how much money a club can lose.
Uefa says Manchester City have breached FFP rules that place restrictions on how much money a club can lose.PHOTO: EPA-EFE

LONDON (AFP) - European football's financial fair play rules risk being "scuppered" if Manchester City overturn their two-season ban from continental competition, according to a football analyst.

Uefa announced the punishment on Friday and also imposed a fine of €30 million (S$45.2 million) on the English champions for what it said were City's serious breaches of its FFP regime.

City, however, wasted little time in responding by saying they would appeal to the Court of Arbitration for Sport (CAS) in the hope of securing an "impartial judgment".

Since the Sheikh Mansour takeover in 2008, which put the financial might of Abu Dhabi behind them, City have won 10 major trophies - including four Premier League titles.

Yet, the prize that has eluded them is the one the Abu Dhabi project most desires - the Champions League.

The Chinese government have provided City with additional backing, as has US private equity firm Silver Lake.

They are all set to ensure City has a no expense spared legal team that will challenge the validity of Uefa's ruling.

Should City succeed, the entire FFP system could collapse, according to Professor Simon Chadwick, director at the Centre for the Eurasian Sport Industry.

"In essence Uefa has to try to win this because, if it doesn't win or is undermined in any way, then its position on Financial Fair Play begins to unravel... FFP is scuppered," Chadwick told Britain's Press Association news agency.

"However, they are not taking on Wigan, they are taking on Asian governments, US tech investors and some of the smartest, most-talented people in football.

"It is transnational power versus localised governance."

Uefa says City have breached FFP rules that place restrictions on how much money a club can lose.

Over a three-year period, clubs are not permitted to lose more than €30 million with exceptions for costs such as youth development and women's teams.

Uefa's Club Financial Control Body found City ensured they did not fall foul of those restrictions by overstating their sponsorship revenue between 2012 and 2016.