Manchester City could lose at least £300 million in revenue if their appeal against financial fair play violations fails and they are relegated, according to the Manchester Evening News.

Manchester City has appealed after being charged with 114 breaches of Premier League financial rules. The club stated that it possesses "irrefutable evidence" to prove its innocence.

The Premier League previously revealed that an independent arbitration panel found Manchester City artificially inflated revenues by approximately £900 million between 2009 and 2018 through "fictitious" sponsorship agreements to circumvent Financial Fair Play rules.

Part of Manchester City's appeal centres on the argument that some sponsorship funds originated from the UAE government rather than the club's owners. Under Premier League rules, the former is permissible, while the latter constitutes a violation. The appeal is expected to conclude within the next 12 weeks, with a final ruling potentially delivered around the new year.

If Manchester City's appeal fails, the team could face significant point deductions or even expulsion from the Premier League. Other Premier League clubs are reportedly divided on whether to support such measures, and transfer bans and financial penalties could also be imposed.

If Manchester City is relegated due to a points deduction or directly expelled from the Premier League, the team would compete in the Championship next season, which would create immense financial pressure on the club.

Football finance expert Kieran Maguire stated in an interview with i that relegation would cost Manchester City £50 million in broadcasting revenue and £225 million in Champions League revenue. Matchday revenue could also decrease by approximately £40 million due to price reductions in areas such as corporate hospitality.

The total revenue loss would amount to £315 million. Simultaneously, the English Football League's squad cost rules would also impact Manchester City. These rules stipulate that a club's spending on players and head coach must not exceed 85% of its attributable revenue.

Maguire commented: "Unless there's a mass exodus of players, it's going to be a Financial Fair Play disaster."

Manchester City's wage bill for the 2024/25 season is approximately £408.4 million, significantly higher than the average Championship team's wage bill of around £37 million.

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