Manchester City faces UEFA sanction over finances

Manchester City and Paris St-Germain are facing fines in the region of £50m, restrictions on their Champions League squad size and a wage limit for failing Uefa financial fair play rules.

BBC Sport has learned the two among nine clubs under examination by Uefa for failing the governing body’s “break even” test – face similar penalties.

It is believed a Champions League squad reduction could see the clubs restricted to using anywhere between 18 and 21 players in Uefa’s premier competition. A normal squad size is 25.

That measure will be combined with a limit on the overall wage bill for their Champions League squad, meaning PSG cannot exceed the amount they spent on salaries this season.

It is believed the club will also have part of their Champions League payments and prize money withheld by Uefa for the next three seasons, equating to £16.5m per season.

Failure to agree a deal would see a club referred to an adjudicatory panel in June where a non-negotiable penalty would be applied.

At that stage clubs could then seek a final appeal at the Court of Arbitration for Sport in Switzerland.

City manager Manuel Pellegrini sidestepped the sanctions issue at a news conference on Tuesday. He said: “When it is official news of Uefa we can analyse what happens with the team. In this moment we don’t know what happens.”

City posted combined losses of almost £149m for the past two seasons – £97m in 2012 and £51.6m in 2013.

Arsenal and Manchester United were in the black for the last two seasons, so they have nothing to fear from Uefa’s financial fair play scheme.

Chelsea made a £49.4m loss last year but registered a £1.4m profit in 2012 so will comply with the new regulations.

Liverpool, who have lost £90m over the last two years but have not played in Europe this season, will not have to pass the FFP rules until next autumn.