Manchester City have been banned from all UEFA competitions for the next two seasons and fined $A40m for "serious breaches" of Financial Fair Play regulations.

An Adjudicatory Chamber of the Club Financial Control Body (CFCB) found the Premier League champions guilty of serious breaches of the UEFA Club Licensing and Financial Fair Play Regulations.

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In a statement, UEFA said City "overstated its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016".

The club were also found guilty of "failing to co-operate in the investigation of this case by the CFCB".

Man City say they are "disappointed but not surprised" by the verdict, describing the process as "prejudicial", and will take the case to Court of Arbitration for Sport.

They released a statement, reading: "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 judgement as quickly as possible and will therefore, in the first instance, commence proceedings with the Court of Arbitration for Sport at the earliest opportunity."

PREMIER LEAGUE STANDINGS

If Manchester City finish in the top four and their ban is upheld by CAS, it would mean a Champions League place would go to the team who finish fifth in the Premier League.

UEFA rule 4.08 states: "A club which is not admitted to the competition is replaced by the next best-placed club in the top domestic championship of the same association, provided the new club fulfils the admission criteria. In this case, the access list (see Annex A) is adjusted accordingly."

Sheffield United currently are fifth in the Premier League table on 39 points, two points ahead of Tottenham who have a game in hand.

REACTION TO SHOCK BAN

The news of Manchester City's shock ban and monster fine sent the football world into meltdown with fans unable to comprehend just what had unfolded.

Many expect the legal battle to drag on with no instant ramifications for the club, but the news was still jaw-dropping.

This article originally appeared on Sky Sports and was reproduced with permission.