City lose appeal over financial fair play probe

CAS rejects attempt to halt Uefa investigation Ruling opens path for decision on sanctions

Manchester City’s attempt to derail a Uefa investigation into potential financial fair play deceptions has been thrown out of sport’s appeal court.

The club, who said in May they were “entirely confident” of being cleared over an alleged £60million breach, had launched a concerted challenge at the Court of Arbitration for Sport in Lausanne. The appeal focused on the legitimacy of investigating allegations first published by the Football Leaks scandal.

However, the Swiss court said yesterday that it had judged the initial appeal to be “inadmissible”, a decision which clears the way for the adjudicatory chamber of its Club Financial Control Body to decide whether City will now be sanctioned. City, however, can go back to CAS again to challenge any verdict, which could still include a ban from the Champions League.

The appeal – launched in May – “was mainly directed against the decision taken by the Investigatory Chamber of the Uefa CFCB regarding the alleged non-compliance with Uefa’s Club Licensing and Financial Fair Play Regulations”, CAS said. “The CAS panel determined that the appeal was inadmissible, considering that, ‘An appeal against the decision of a federation, association or sports-related body may be filed with CAS… if the appellant has exhausted the legal remedies available to it prior to the appeal, in accordance with the statutes or regulations of that body,’” a statement on behalf of the panel said.

Uefa, which previously launched sanctions against City in 2014, said its investigation was “ongoing”. Investigators have reviewed leaked files from 2015, which claim almost £60million was paid directly into the club by their Arab owners but declared as sponsorship.

The sanctions decision is now at its final stage for Europe’s governing body, and it is rare for the adjudicatory chamber to rule against the conclusions of chief investigator Yves Leterme, who had been leading the review into evidence detailed during the Football Leaks scandal last autumn. Leterme said in January that the club face “the heaviest punishment” if the allegations are proven.

However, City launched a scathing attack on Leterme in a statement in May which said the club are “disappointed, but regrettably not surprised, by the sudden announcement of the referral”.

“Manchester City is entirely confident of a positive outcome when the matter is considered by an independent judicial body,” a statement said. “The accusation of financial irregularities remains entirely false and the CFCB referral ignores a comprehensive body of irrefutable evidence provided to the chamber. The decision contains mistakes, misinterpretations and confusions fundamentally borne out of a basic lack of due process.”

Meanwhile, Leroy Sane’s teammates are increasingly convinced the Germany winger will leave City for Bayern Munich next year. Bayern wanted to sign Sane last summer but those hopes ended when he ruptured a knee ligament.