Manchester City have lost their appeal against UEFA's decision to investigate them for alleged breaches of Financial Fair Play rules.
City appealed to the Court of Arbitration for Sport (CAS) to throw out UEFA's investigation, but the Premier League champions today learned that appeal has been rejected.
It means City still face action from UEFA for alleged breaches of FFP, although expulsion from next season's Champions League is unlikely, in favour of a financial penalty.
City's appeal was considered by three-man CAS panel, which today ruled that City's appeal was inadmissible.
CAS released a statement which read: “An appeal against the decision of a federation, association or sports-related body may be filed with CAS, if the appellant has exhausted the legal remedies available to it prior to the appeal, in accordance with the statutes or regulations of that body.
"In the present case, the decision rendered by the CFCB IC to refer a case to the CFCB AC is not final and can therefore not be appealed to CAS directly, because the AC is competent to take any of the decisions listed in Article 27 CFCB Procedural Rules, that are described as being final.”
The news comes with City set to avoid a Champions League ban as punishment for potential breach of Financial Fair Play rules.
The Athletic have claimed UEFA are struggling to enforce their own regulations and City will avoid missing out on competing in Europe's top club competition.
UEFA formally opened the investigation in March following a series of leaks into their financial conduct published in German outlet Der Spiegel.
Although City have yet to make a comment, the Abu Dhabi-owned club have previously denied claims of wrongdoing.
"The accusation of financial irregularities remains entirely false and the CFCB IC referral ignores a comprehensive body of irrefutable evidence provided by Manchester City FC to the Chamber," the club said in a statement last month.
"The decision contains mistakes, misinterpretations and confusions fundamentally borne out of a basic lack of due process and there remain significant unresolved matters raised by Manchester City FC as part of what the Club has found to be a wholly unsatisfactory, curtailed, and hostile process."
