Manchester City, the reigning Premier League champion, have been banned from all UEFA competitions for the next two seasons.
The Pep Guardiola side are also fined the sum of £24.9m for “serious breaches” of financial fair play regulations.
In a statement on Friday, the European football body said City “overstated its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016”.
It also found the English side guilty of “failing to cooperate in the investigation by the CFCB”, adding that the club “will be banned from Europe in the 2020/21 and 2021/22 seasons.”
City’s ban will come into effect from the start of next season, meaning that they will remain in this season’s competition and will face Real Madrid in the last-16 on February 26.
The ban is, however, subject to appeal before the Court of Arbitration for Sport (CAS).
Reacting to the decision, Manchester City said they are “disappointed but not surprised” by the “prejudicial” decision and will appeal.
“Manchester City is disappointed but not surprised by today’s announcement by the UEFA Adjudicatory Chamber,” said the club in a statement.
— Manchester City (@ManCity) February 14, 2020
“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.”