NYON — UEFA confirmed on Thursday that Manchester City will be excluded from the Champions League following a ruling that the club breached financial sustainability regulations, alongside a fine exceeding €30 million. The decision marks the most severe sanction imposed on an elite European club in years.

The ruling followed an investigation by UEFA's Club Financial Control Body into City's reporting of sponsorship income and compliance with cost-control rules. UEFA's findings reflected deliberate and sustained breaches rather than administrative error, justifying the exclusion from continental competition.

Manchester City, owned by the Abu Dhabi-based City Football Group, rejected the conclusions and said it would appeal to the Court of Arbitration for Sport in Lausanne. The club has previously overturned a UEFA ban at CAS in 2020, and its lawyers argued that the latest evidence did not support the sanction's severity.

The decision reshapes the competitive landscape in England and Europe, where Qatari-owned Paris Saint-Germain and other state-backed clubs have faced parallel scrutiny. Premier League rivals and smaller clubs welcomed the ruling as a test of whether financial regulations carry real consequences for the wealthiest owners.

Pep Guardiola's squad remains eligible for domestic competition while the appeal proceeds, but the ban casts doubt over the club's European participation for the coming season. UEFA said the sanction would stand pending any ruling from CAS.