But CAS ruled Monday that the club “did not disguise capital financing as sponsorship contributions” after the City appealed the ruling in February.
However, it was decided that City had not cooperated with UEFA authorities and an original fine of € 30 million ($ 34 million) was reduced to € 10 million ($ 11.3 million).
“While Manchester City and its legal advisers have not yet reviewed CAS’s full decision, the club appreciates the implications of today’s decision as a validation of the club’s position and the body of evidence it was able to present,” said a statement. town.
“The club wishes to thank the members of the panel for their diligence and the due process they administered.”
FFP rules that state clubs can only lose $ 32 million over three seasons, otherwise they will be subject to a fine or suspension.
‘Defective’ process
City was bought by Abu Dhabi owners in 2008 and has since invested heavily in player transfers, transforming the club into one of the dominant forces in English football for the past decade.
The Champions League, the richest competition in European football, is the only major trophy so far to elude manager Pep Guardiola, who took over in 2016 during his time in the City. The club never won the European Cup.
When the punishment was announced on February 14, City called UEFA’s process “flawed” and filed an appeal later in the month.
“UEFA takes note of the decision made by the Court of Arbitration for Sport to reduce the penalty imposed on Manchester City FC by the UEFA independent club financial watchdog for alleged breaches of the licensing and fair play rules club financial statement, “said a statement by the governing body.
“UEFA notes that the CAS panel found that there was insufficient conclusive evidence to uphold all the conclusions of the Club Financial Control Agency (CFCB) in this specific case and that many of the alleged breaches were expired due to the five-year period provided in the UEFA regulations.
“In recent years, Financial Fair Play has played an important role in protecting clubs and helping them to be financially sustainable and UEFA and ECA remain committed to their principles.”
FFP’s uncertain future
The decision has led to questions about UEFA’s FFP regulations that are designed to stop club overspending.
An investigation into the Qatari-backed French team Paris Saint-Germain concluded last year to determine whether the club had violated FFP regulations when CAS confirmed PSG’s appeal of the case.
“It is hard to see how UEFA FFP rules can survive this,” former England international-turned-host Gary Lineker tweeted in response to the City’s verdict.
“In fact, can UEFA survive the ramifications?”
In this season’s competition, City faces Real Madrid next month in the round of 16 by defeating Los Blancos 2-1 in the first leg.
The winner of that tie will face Lyon or Juventus in the quarterfinals, from that point the ties will be played in Lisbon, Portugal, in just one stage.
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