Senior figures within English football are concerned that Manchester City could play in the Champions League next season even if they are relegated from the Premier League for breaching financial regulations.

It centres around the possibility that City win the Champions League, which would provide qualification for the competition as titleholders - regardless of their status in the English domestic pyramid.

BBC Sport has been told that there is no automatic mechanism to remove City from a European competition they qualify for on sporting merit.

An independent commission found City guilty of all charges related to inflating sponsorship revenue by £830m by using sham contracts, as well as hiding other expenses worth an additional £90m.

Without this, the independent commission said, City would have failed the profit and sustainability rules in all nine seasons between the 2009-10 and 2017-18 seasons.

City continue to strenuously deny any wrongdoing, calling the outcome a "Premier League conspiracy". Last week the club lodged an appeal against the verdict.

BBC Sport has spoken to a number of senior figures within the game in recent days who are concerned about the prospect of City qualifying for the Champions League next season.

The feeling is that if City do not win their appeal and are therefore handed a strong sanction, then being allowed to compete alongside Europe's elite, and receiving the financial rewards which come with it, would not be acceptable.

The immediate issue surrounds the Uefa licence, which every club needs in order to play in Europe.

One source said the issue of City's licence "had been raised" and that a solution "would require the sort of joined up thinking that's been a bit lacking so far".

The licences are issued by the Football Association, though the process itself is delegated to the Premier League.

The licences are based upon current information which does not take into account sanctions or breaches related to historical offences.

If a club fulfils all minimum criteria required for admission, the licence cannot be refused.

The key reasons a club may fail relate to overdue payables to other teams, players or outstanding tax liabilities.

Match-fixing convictions within the last 10 years, or an integrity conflict related to multi-club ownership, are considered but would not apply to City.

A source added that "licences are awarded on the basis of current financial performance, so the grounds to refuse one are unclear".

If the verdict is upheld by the appeal board it is likely City will face severe sanctions, which could include heavy points deductions, a large fine and transfer embargoes.

The sanctioning hearing, which will determine the level of punishment City must face, is yet to be scheduled.

While a points deduction could rule City out of qualifying by league position, it might still be achieved through cup competitions.

Expelling City from the Premier League immediately is also an option which remains on the table.

Senior figures both in the English game and in European football are aware of how bad the optics would be if City face strong sanctions yet still play in the Champions League.

It is exacerbated by doubts that the whole process - including an appeal against the sanction - is not guaranteed to be completed by the end of the season.

The Premier League added new clauses to its regulations to set time frames around disciplinary processes and appeals in the summer.

If applicable, this would mean a judgement on the sanction must come no later than January. But there is no confirmation this applies to the City case.

It is not just about City winning the Champions League, however. If they were to win the FA Cup or Carabao Cup - they play Brighton in the fourth round on 28 October - that would provide a place in the Europa League or the Conference League respectively.

European football's governing body cannot take any action while the Premier League disciplinary process plays out, but it is understood that potential scenarios are likely to be discussed by the Uefa administration and the Uefa club financial control body (CFCB).

The Premier League case found City guilty of five charges of breaching Uefa's profit and sustainability rules.

Uefa may open a case in accordance with the disciplinary regulations to find a way to remove City's eligibility.

But this does not provide certainly as City's offences are historical.

In 2020, City successfully overturned their two-year ban from European club competitions handed down by Uefa.

Uefa issued the ban after ruling City had committed "serious breaches" of financial fair play regulations between 2012 and 2016 - with the same period as the Premier League's investigation.

But the Court of Arbitration for Sport (Cas) overturned the ban because the offences were "time-barred" under Uefa's rules.

If City are not successful in their appeal and win the Champions League, the CFCB will have to find a disciplinary measure to remove the club from next season's competition.

Yet with City already having won against Uefa through Cas once before, there is the concern they could do so again. (BBC)

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