Man City could avoid key punishment due to little-known loophole as Premier League clubs fear one scenario

The Premier League's senior figures are concerned that Manchester City could still play in the Champions League next season, even if they are relegated from the top flight for breaching financial regulations.

City were found guilty of the charges brought against them by the Premier League, relating to the period between 2009 and 2018 when they won three league titles.

The independent commission's findings were released last week, and it revealed that the Cityzens had used 'sham' contracts to inflate revenue figures and reduce costs.

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Why Man City could still play in the Champions League next season if they are kicked out of the Premier League

Man City were found to have arranged disguised funding schemes worth more than £830million with commercial partners, as well as hiding other additional expenses worth around £90million.

A suspension from playing in the league, points deductions, the replaying of matches, expulsion from the league, being ordered to pay compensation to other clubs, automatic relegation, and even their titles being stripped are all punishments that are currently on the table.

But according to BBC Sport, one possibility they could avoid is being kicked out of the Champions League due to one little-known loophole.

Senior figures in English football are 'concerned' that City could be allowed to play in Europe's elite competition when clubs believe it 'would not be acceptable' for them to receive the financial benefits after breaking the rules.

That is because the UEFA license that every side needs to play in Europe doesn't take into account sanctions or breaches related to historical offences.

A key reason a club may be stripped of the license is if their payments to other teams, players, or outstanding tax liabilities are overdue. In Man City's case, match-fixing convictions within the last 10 years, or an integrity conflict related to multi-club ownership, are considered but would not apply in this instance.

City would, of course, have to win the Champions League for this scenario to come into play - if they are booted out of England's top-flight - and senior figures in the sport are aware of how bad this would be if they face strong sanctions but can still play in Europe's elite competition.

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What punishment Premier League clubs want Man City to have

Man City have maintained their innocence throughout the case and launched their appeal against the guilty verdict on October 1 after saying they have a “comprehensive body of irrefutable evidence that exists".

An appeal hearing lasts no more than 12 weeks, and a result is expected within 30 days of its conclusion. Currently, it isn't clear what punishment could be heading their way if an appeal fails, but it was reported on Tuesday (October 6) that Premier League clubs want City to be hit with both “retrospective punishment” and a sanction for breaking the league’s financial rules.

A source told BBC Sport that four clubs feel a one-hit points deduction would not be fit for City's wrongdoing, and instead, they believe a points deduction across multiple seasons would be more fitting.

There is also belief that a potential transfer ban should stretch across multiple windows, which would hinder their chances of regaining top-flight status if they are relegated to the Championship.

Man City return to Premier League action on Sunday (October 11) with a trip to Liverpool, where they will undoubtedly be greeted by a hostile Anfield atmosphere.