City is under investigations by both the Premier League and European football’s governing body and could face serious consequences if found to have given wrong information concerning the team’s sponsorship income.
UEFA’s chief FFP investigator Yves Leterme made the claims in an interview with Belgian magazine Sport and Strategy saying: “If what has been written about Manchester City is true, there might be a serious problem.
“This can lead to the heaviest punishment – exclusion from UEFA competitions.”
The allegations first came to light last year after German magazine Der Spiegel published a report based on leaked emails between club officials.
“If the (Der Spiegel) information is correct, this goes against the truthful reporting of financial affairs,” he added
According to the German magazine, only £8million of City’s £67.5million sponsorship deal with Etihad came from the airline in 2015, with the rest coming directly from the owner Sheikh Mansour.
This is the second time City are finding themselves in trouble over FFP regulations, back in 2014, the Manchester club was given a £49million fine by UEFA for breaching the rules.