Manchester City could be penalised with points deduction and maybe relegation after their Champions League ban. UEFA have barred City from taking part in the next two Champions League campaigns and slapped them with a €30million (£25m) fine due to Financial Fair Play breaches.

The institution’s Adjudicatory Chamber found the Citizens had overstated their sponsorship revenue between 2012 and 2016 in accounts submitted to the European governing body.

According to The Independent, that could force the Premier league to act due to FFP regulations affecting their own licensing.

A club needs to hand financial information matching those supplied to UEFA to attain a Premier League license.

Therefore, a points deduction is now seen as highly possible and relegation to League Two has been mentioned, even though that scenario appears to be very unlikely.

City have already confirmed their plans to appeal the decision at the Court of Arbitration for Sport.

The Premier League champions announced that they aren’t surprised by UEFA’s decision to ban them from the competition.

The Manchester giants accused the administrative body of having a flawed investigation process, which included a number of leaks to the media.

City announced: “Manchester City is disappointed but not surprised by today’s announcement by the UEFA Adjudicatory Chamber.

“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 will carry on competing in this season’s Champions League as the punishment will come into effect next term and will carry on until the 2021-2022 campaign, pending an appeal.

Pep Guardiola’s side will take on Real Madrid in the Round of 16 with the first leg taking place on February 26 at the Santiago Bernabeu (8pm).