Uefa have opened a formal investigation into allegations that Manchester City flouted their Financial Fair Play rules, with the club facing the prospect of expulsion from the Champions League if found guilty.
The investigatory chamber of the independent Uefa club financial control body said it was looking into “several” alleged violations by the Premier League champions following leaked documents published by German magazine Der Spiegel.
They are understood to include claims that only £8 million of a £67.5 million sponsorship deal with Etihad Airways was funded by the airline, with the rest of the money paid by City’s Abu Dhabi owners to the club.
“The investigation will focus on several alleged violations of FFP that were recently made public in various media outlets,” a statement read.
City have claimed they are the subject of an “organised and clear” attempt to damage their reputation.