Manchester City’s ban from European football overturned

CAS ruled that City did not breach Financial Fair Play (FFP) rules by disguising equity funding as sponsorship. Sport’s highest court also reduced a fine for failing to cooperate with UEFA to 10 million euros ($11.30 million) from 30 million euros.

“Most of the alleged breaches reported by the (UEFA) Adjudicatory Chamber of the CFCB (Club Financial Control Body)were either not established or time-barred,” CAS said in a statement. European soccer’s governing body UEFA ruled in February that City had committed serious FFP breaches and failed to cooperate with its investigation.

Missing out on the Champions League would have cost City, who have denied any wrongdoing, as much as 100 million pounds ($126.02 million) in prize money and broadcast revenue, as well as matchday and other revenues. The FFP regulations are designed to stop clubs running up big losses through spending on players. They also ensure sponsorship deals are based on their real market value and are genuine commercial agreements — and not ways for owners to pump cash into a club to get around the rules.

CAS said its full legal ruling, with details of the case and the decision, would be published in the coming days.

“Whilst Manchester City and its legal advisors are yet to review the full ruling by the Court of Arbitration for Sport (CAS), the Club welcomes the implications of today’s ruling as a validation of the Club’s position and the body of evidence that it was able to present,” City said in a statement. “The Club wishes to thank the panel members for their diligence and the due process that they administered,” the Premier League club added.

UEFA had said City had committed “serious breaches” of the FFP rule in information submitted to them between 2012 and 2016.