Uefa has moved closer to banning Manchester City from the Champions League for one season. However, it would probably not be next season as City would certainly appeal to the Court for the Arbitration of Sport in Lausanne.
The step taken is a technical one, but it is a further step in the escalation of the dispute. The chief investigator of Uefa's Club Financial Control Body, responsible for policing financial fair play regulations, has decided to refer City to its adjudicatory chamber.
The club has been accused of artificially inflating the value of sponsorship deals with undeclared additional funding from its Abu Dhabi-based owner, among a number of measures intended to deceive the investigators. The club has always denied the allegations.
Manchester City said that it was ''disappointed, but regrettably not surprised' by the move and that 'the accusation of financial irregularities remains entirely false'. The club said in a statement that the Uefa decision 'contains mistakes, misunderstandings and confusions fundamentally borne out of a basic lack of due process.' This charge could provide a basis for future legal action, but in the meanwhile the club's Premier League triumph is being tarnished.
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