Man City Champions League Spot Worry Even If Relegated

Man City could qualify for Champions League next season even if relegated, senior figures warn

Senior figures in English football are worried that Manchester City could play in the Champions League next season even if they are relegated for breaching financial regulations. The concern centres on City potentially winning the Champions League, which would qualify them as titleholders regardless of their domestic status.

Competition: UEFA Champions League
Key issue: No automatic mechanism to remove City from a European competition they qualify for on sporting merit
Breaches found: Inflating sponsorship revenue by £830m via sham contracts, hiding £90m of expenses
Failed PSR: Would have failed profit and sustainability rules in all nine seasons between 2009-10 and 2017-18
City response: Strenuously deny wrongdoing, call outcome a "Premier League conspiracy", lodged appeal last week
Sanction hearing: Yet to be scheduled

What was said

"licences are awarded on the basis of current financial performance, so the grounds to refuse one are unclear"
— A source, on the Uefa licence process

This quote gets to the heart of the problem: the FA-issued Uefa licence, which every club needs to play in Europe, is based only on current information and does not take into account sanctions or breaches related to historical offences. If a club fulfils all minimum criteria, the licence cannot be refused. The key failings relate to overdue payables to other teams, players or outstanding tax liabilities, or match-fixing convictions and integrity conflicts related to multi-club ownership — none of which apply to City.

The numbers

£830m — inflated sponsorship revenue via sham contracts
£90m — other expenses hidden
9 — seasons City would have failed PSR (2009-10 to 2017-18)
5 — charges of breaching Uefa's profit and sustainability rules
2 — years of Uefa ban overturned in 2020

Why City's Champions League path is a legal minefield

The intricate web of regulations means that even if Manchester City are hit with a heavy points deduction that rules them out of qualifying by league position, they could still secure a Champions League spot by winning the competition itself. That would provide qualification as titleholders, and there is no automatic mechanism to remove them. The same applies if they win the FA Cup or Carabao Cup — they play Brighton in the fourth round on 28 October — which would give a place in the Europa League or Conference League respectively.

Uefa may choose to open a disciplinary case to find a way to remove City's eligibility, but this does not provide certainty because City's offences are historical. In 2020, City successfully overturned their two-year ban from European club competitions handed down by Uefa. Uefa issued the ban after ruling City had committed "serious breaches" of financial fair play regulations between 2012 and 2016 — the same period as the Premier League's investigation. But the Court of Arbitration for Sport (Cas) overturned the ban because the offences were "time-barred" under Uefa's rules. If City are not successful in their appeal and win the Champions League, the CFCB will have to find a disciplinary measure to remove the club from next season's competition. Yet with City already having won against Uefa through Cas once before, there is the concern they could do so again.

Talking points

Should a club found guilty of £830m in inflated sponsorship revenue be allowed to compete in Europe while appealing sanctions? The optics would be damaging.
The FA and Premier League's licensing process is clearly not designed for this scenario — a "joined up thinking" solution is needed but may be impossible under current rules.
If City win the Champions League and are relegated, would Uefa actually have the appetite for a legal battle they previously lost at Cas?
Timing is everything: the Premier League's new clauses mean a sanction judgement must come by January, but there is no confirmation this applies to City's case.

What happens next

City's appeal against the verdict will be heard by an appeal board. If the verdict is upheld, a sanctioning hearing — yet to be scheduled — will determine the level of punishment, which could include heavy points deductions, a large fine and transfer embargos. Expelling City from the Premier League immediately is also an option on the table. Meanwhile, Uefa's club financial control body (CFCB) is likely to discuss potential scenarios, though it cannot act while the Premier League disciplinary process plays out. The immediate focus for City on the pitch is their FA Cup fourth-round tie against Brighton on 28 October.

Frequently asked questions

Can Man City play in the Champions League next season if they are relegated?

Yes, potentially. If City win the Champions League this season, they would qualify for next season's competition as titleholders, regardless of their domestic status. There is no automatic mechanism to remove them.

Why can't the Premier League or FA just refuse Man City a Uefa licence?

The Uefa licence is based on current information and does not take into account sanctions or historical breaches. If a club meets the minimum criteria, the licence cannot be refused.

What sanctions could Man City face?

If the appeal is upheld, City could face heavy points deductions, a large fine and transfer embargos. Expulsion from the Premier League is also an option.