Manchester City have been banned from Uefa club competitions for the next two seasons after committing “serious breaches” of financial fair play (FFP) regulations.
The current Premier League champions will not be able to participate in the Champions League of Europa League in 2020-21 or 2021-22.
They have also been fined 30m euros (£25m).
The penalty is subject to an appeal to the Court of Arbitration for Sport, which City have said they will make.
The club also said they are “disappointed but not surprised” by the “prejudicial” decision.
In a statement revealing the news, the independent Adjudicatory Chamber of the Club Financial Control Body (CFCB) said City had broken the rules by “overstating its sponsorship revenue in its accounts and in the break-even information submitted to Uefa between 2012 and 2016”.
They also said that the club had “failed to cooperate in the investigation”.
Man City response
Manchester City responded in a statement: “The club has always anticipated the ultimate need to seek out an independent body and process to impartially consider the comprehensive body of irrefutable evidence in support of its position.
“In December 2018, the Uefa chief investigator publicly previewed the outcome and sanction he intended to be delivered to Manchester City, before any investigation had even begun.
“The subsequent flawed and consistently leaked Uefa process he oversaw has meant that there was little doubt in the result that he would deliver. The club has formally complained to the Uefa disciplinary body, a complaint which was validated by a CAS ruling.
“Simply put, this is a case initiated by Uefa, prosecuted by Uefa and judged by Uefa. With this prejudicial process now over, the club will pursue an impartial judgment as quickly as possible and will therefore, in the first instance, commence proceedings with the Court of Arbitration for Sport at the earliest opportunity.”
City face Real Madrid in the round of 16 of this year’s Champions League, with the first leg on 26 February.
This year may now present their last chance to win the elusive tournament until 2023.
La Liga President Javier Tebas said Uefa had “finally taking decisive action”.
“Enforcing the rules of financial fair play and punishing financial doping is essential for the future of football,” he said.
“For years we have been calling for severe action against Manchester City and Paris Saint-Germain, we finally have a good example of action and hope to see more. Better late than never.”
It has also been reported that City could face similar disciplinary proceedings from the Premier League, which has similar, but not identical FFP rules.
However, the punishment will have no implications for Manchester City’s women’s team.