Manchester City could reach Champions League even if relegated from Premier League

Manchester City could still play in next season’s Champions League even if they are relegated from the Premier League.

The possibility has emerged after the club’s legal team lodged an official appeal against an independent commission’s finding that City committed more than 100 financial rule breaches.

The allegations include inflating sponsorship revenue by £830m (about R18.2bn) through “sham contracts” and concealing a further £90m (about R1.98bn) in expenses.

While the consequences being discussed in England have centred on points deductions, the removal of titles or expulsion from the Premier League, a more unusual issue is now being examined across the game.

According to BBC Sport, City could be demoted to the Football League and still take part in next season’s Uefa Champions League.

The potential loophole is linked to the competition’s qualification rules. If City win this season’s Champions League, they would automatically qualify for the following campaign as holders, regardless of their position in the English football pyramid or whether they had been relegated by the Premier League.

There is currently no automatic provision, or clear legal basis under Uefa’s licensing regulations, to prevent City from entering if they qualify through their results on the pitch.

Every club competing in European football must hold a Uefa licence. That licence is issued by the Football Association, under powers delegated to it by the Premier League, but the criteria focus on current financial matters.

Those requirements include ensuring that clubs do not have overdue tax liabilities or unpaid transfer fees. The independent commission’s findings, however, concern alleged offences committed between 2009 and 2018, leaving the grounds for refusing City a licence uncertain.

The question of City’s licence has already been raised at senior levels, one source told BBC Sport. There is an acknowledgement that resolving the situation will require “joined-up thinking that’s been a bit lacking so far”.

The prospect has created concern within European football. Should City lose their appeal and receive a severe domestic punishment, they could potentially earn hundreds of millions of pounds in European prize money while competing among the continent’s leading clubs despite being relegated domestically.

Uefa cannot intervene while the Premier League disciplinary process is continuing. However, the possible outcomes are expected to be considered by the Uefa administration and the Uefa club financial control body (CFCB).

Meanwhile, Pep Guardiola is due to watch his former side return to European action next week Wednesday, when City host Paris Saint-Germain at the Etihad Stadium on matchday two.

City began their campaign with a 2-0 win over FC Porto and now return to the Champions League with the competition representing more than a chance to win a trophy. It could also provide a route back into Europe’s elite competition if they are excluded from the Premier League.